Module 3 · Chapter 8

Restrictive Covenants: Non-Compete, Non-Solicitation and Non-Dealing

Limits after leaving protect an employer’s customers, secrets and team. A court enforces one only if it protects a real interest and goes no further than needed, so each is drafted narrowly.

≈ 11 min read 8-question test

In this chapter

  • What a court needs before it will enforce a restriction after leaving
  • Why the first non-compete was struck out, and how the customer and team clauses work
  • How garden leave and separate sub-clauses keep each restriction safe

8.1The restrictions in one paragraph

Clause 23 limits what Esme may do for a time after she leaves Cressby. Lawyers call such terms restrictive covenants, and the Contract heads clause 23 “Restrictions after employment”. There are four: a non-compete, a non-solicitation clause, a non-dealing clause and a non-poaching clause. A court enforces each one only if it protects a real business interest and goes no further than needed.

Key point

A narrow restriction is a strong one. A court never rewrites a restriction that goes too far. If deleting words cannot save it, it fails and protects nothing.

Also in this chapter

  1. What a court will enforce
  2. The non-compete, and the one Neil wanted
  3. Keeping her away from Cressby’s customers
  4. Keeping the sales team together
  5. Garden leave, and why each restriction stands alone
  6. Non-competes may soon be limited by law
  7. Your job

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