Breach of restrictive covenant

Many employment contracts contain provisions that restrict the employee’s activities in the event the employment comes to an end.

Restrictive covenants seek to protect the interests of an organisation and its remaining partners or directors, but when a senior employee, or an employee important to the business, leaves and seeks to take some of his or her former employer’s business with them, for example by taking clients, contacts or data, it is important for the employer to act quickly to protect its business. How can you act quickly and decisively to ensure you don’t lose business as a result of a former employee’s actions?

Working principally with employers, Stephensons’ team provides clear advice, implemented quickly to ensure that the restrictive covenant is enforced, observed and your business protected.

Advice relating to employment restrictive covenants is often required urgently. Contact our proactive team to discuss your concern on 0203 816 9303.

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How we help

Stephensons’ team has a depth of knowledge in advising employers on how to protect their business where a restrictive covenant has been breached.

Our team advises employers, and employees in some instances, as to the specific nature of restrictive covenants and acts efficiently when a breach is suspected to both assess the breach and, if necessary, to seek injunctive relief. Often court action is avoided by putting in place practical steps to limit any further damage.

Working closely with Stephensons’ employment advisers, the commercial litigation team delivers a complete and highly experienced service promptly and with a great track record of results.

Need to put a contract of employment in place? Find out more

Our services

Our specialists advise on breaches of restrictive covenants and business protection including:

  • Restriction of disclosure of commercially sensitive information
  • The ‘non-soliciting’ (or poaching) of a client or individual
  • Restriction of the geographical location where a former employee can work
  • Prevention of the former employee in dealing with, or contacting, your clients

Our clients

Stephensons advises predominantly employer clients and businesses, ranging from small partnerships to larger enterprises across all sectors.

Our team also advises a number of individuals in their capacity as former employees to dispute the enforceability of restrictive covenants in their contracts of employment.

Case study

“Our client, operating in the field of recruitment, was especially exposed to its employees exploiting the customer connections they had gained during the course of their employment.

Our client's ex-employee had secretively set up their own limited company and took steps whilst in employment to solicit customers as well as staff away from our client.

Given the seriousness of the breaches of contract, our team secured an injunction in the High Court to prevent any further loss or damage. The High Court proceedings were settled swiftly by way of a negotiated agreement, thereby avoiding future costs, risks and damage.“

Testimonial
"We were referred to Stephensons as a St Helens Chamber member for employment law advice and support. We had previously had a very poor experience when being represented by a large locally based law firm and due to this had no confidence to proceed with them. As a result we liaised with St Helens Chamber and then moved over to Stephensons.

On meeting the solicitor (Alistair Gregory) from Stephensons, I was made to feel very comfortable and he was very informative at the first stages of our meeting over the process and costs. Throughout our case we were kept fully up to date with progress and we felt supported and guided at all times and if required we would most certainly use Stephensons again."
Paul Keogh, Principal Director, Inspire Children’s Services
8.5 out of 10
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As an award-winning top 150 law firm, with over 450 staff based in offices across the country, you're never far from the advice you need.