Restrictive covenants and confidentiality clauses

Restrictive covenants and confidentiality clauses can play an important role in protecting your business, your clients and your commercially sensitive information. Carefully drafted clauses can help reduce the risk of former employees using confidential information, approaching clients, or competing unfairly after leaving your business.

Employment contracts should not simply be treated as standard documents. Restrictive covenants and confidentiality provisions should be tailored to the individual employee, their role and the nature of your business. Clauses that are too broad or unreasonable may not be enforceable, which is why obtaining clear legal advice at the outset is essential.

Restrictive covenants commonly deal with matters such as preventing former employees from soliciting clients, poaching members of staff, working for competitors within a limited area or time period, or using confidential business information for personal gain. Confidentiality clauses are designed to protect sensitive information including customer databases, pricing structures, financial information, supplier details, trade secrets and internal processes.

Disputes can arise where an employee leaves to join a competitor, starts a competing business or begins contacting former clients or colleagues. These situations can quickly become complex and commercially damaging. Taking prompt legal advice can often help resolve matters before they escalate further.

Our employment solicitors can advise employers on the enforceability of existing restrictive covenants and confidentiality clauses, as well as drafting new agreements that are practical, proportionate and suited to your business needs. We can also assist employees who are concerned about the restrictions contained within their employment contracts and how these may affect future career opportunities.

Where necessary, we can advise on urgent court applications, including injunctions, to help prevent the misuse of confidential information or breaches of restrictive covenants. In some cases, swift action can be critical in limiting financial and reputational damage to a business.

Businesses should also regularly review their employment contracts and post-termination restrictions. Clauses that were appropriate when an employee joined the business may no longer provide suitable protection if their responsibilities, seniority or access to confidential information have changed over time.

At Boys & Maughan Solicitors, our employment law team provides practical and commercially focused advice for employers and employees across a wide range of workplace matters.

For advice on restrictive covenants and confidentiality clauses, contact our employment team on 01843 234000 or use the enquiry form on this page.