Restrictive Covenant Advice Guide

16 April 2019

A restrictive covenant is a term or condition in an individual's contract of employment which effectively restricts or limits that individual's rights when they leave their employment. Generally speaking, restrictive covenants occur in two forms:

  • A restriction on the right to compete with their previous employer after they leave their employment.
  • A restriction on an employee to prevent them from using trade secrets or confidential information, obtained from their previous employer, after they leave their employment.

See also "Knowledge Obtained in the Course of Employment"

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