Episode 9 - Navigating Restrictive Covenants

Diary of a HR Man

05-06-2024 • 46 mins

Restrictive covenants are essential tools for protecting business interests. They are agreements that place certain restrictions on employees even after they leave your company. These covenants play a pivotal role in safeguarding sensitive information, maintaining client relationships, and ensuring that businesses do not lose their competitive edge. But what happens if these covenants are not in place or neglected? The impact can be significant, leading to potential loss of clients, leakage of confidential information, and even the undermining of your business’s market position.

In this episode, we'll explore:

·       The basics of restrictive covenants

·       How to effectively draft these covenants

·       Solutions for situations where covenants are not initially in place.

·       What realistic covenants look like in terms of timeframe and geographic scope.

·       The enforceability of these covenants and whether it's worth the effort.

·       Scenarios where covenants might be invalid, such as breaches of contract by the employer or redundancy situations.

·       And the steps to take when an employee breaches these covenants.

By the end of this episode, you'll have a comprehensive understanding of how restrictive covenants can benefit your business and the potential risks if they are neglected.