In an age of innovation, coupled with growing numbers of employees moving into self-employment, employers need to protect their own interests more than ever before when their staff leave. Losing employees is one headache, but a potentially greater headache is what those employees may be able to do with the sensitive data that they have been privy to during their employment.
The client/customer list is arguably the most sensitive piece of information. This is likely to contain contact details for existing clients; detailed information on their requirements, charging details and data on when their contract is coming up for renewal etc. The impact of an ex-employee starting up his own business with this information could be severely damaging to his ex-employer’s organisation if he tries to take their business. Restrictive covenants can combat this potential exposure, and ensure employers can protect not only their sensitive client data, but also other key elements.
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• What is a restrictive covenant?