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