How do you make your restrictive covenants work for you?

You can have the best drafted restrictive covenants in the world. They will be of little or no help if they are not properly incorporated into the contract of employment.

Similarly, trying to assign the covenants using other methods can also be problematic.

The ‘one size fits all’ approach makes it difficult to establish that the covenants are applicable to specific individuals.

Or, if you try to incorporate the restrictive covenants into side letters that could also lead to arguments. Including as to whether or not there was sufficient consideration to make the covenants legally binding.

The good news is even if you don’t have a signed employment contract, that isn’t necessarily fatal. Often a binding obligation can be established simply by looking at the conduct of the parties. (For example, if both parties have been aware of the terms and complied with them. Even though they have not signed them off).

However, if you do have a covenant in place make sure they are reviewed regularly, especially as and when an individual’s role and responsibilities have changed in any significant way.

If you have any questions regarding restrictive covenants or any other aspect of your contract or terms of employment, please email or call Michael on 0114 290 6287.

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