Mention the area in which this can be applicable and take care to ensure that the area of applicability matches with the geographic place of business/customer acquisition.Since it is not drafted as openly as a restrictive covenant, there is a higher chance it would be upheld in court, if challenged.įurther, to ensure that the legality of such an instrument cannot be challenged, an employer should make sure to: Currently, employers have no recourse for protecting their business from ex-employees.īut in certain cases an employer may replace a restrictive covenant with a non-compete clause to address genuine business concerns in a limited manner.Ī non-compete clause works well to protect things like confidential client information. However, in a legal sense, such a clause is null and void as it restrains free trade. Non-poaching covenant – An employee cannot approach his/her ex-colleagues to join a competing businessĪ restrictive covenant limits employees from soliciting or poaching customers of his/her ex-business using the information gained during employment.Non-solicitation covenant – An employee cannot solicit or approach customers of his/her ex-business.Non-compete agreements which state an employee cannot leave the workforce to join a competing business.It dealt with how a piece of land may be used and developed. Definition: In human resources, a restrictive covenant is a clause which limits an employee from seeking placement with his/her ex-employer till a certain time limit after leaving the business/organisation.Ī restrictive covenant started out as a legal term to govern land owners.
0 kommentar(er)
