Restrictive Covenants In London

It could be vitally important for a company to protect some information or processes from unwanted competition. To do this Restrictive Covenants prevent an employee that still works for them, or one who has recently left, from divulging what they may know. The higher the management or skill level of the ex-employee the bigger the possibility that they may go and work for a direct competitor.

Some of the possible problems can be minimised by different clauses.

• Non-competition clauses help prevent poaching or head hunting from rivals. They also prevent the employee from setting up in direct competition from themselves, using all the information gathered previously.
• Non-solicitation clauses help to limit others from being enticed away by the ex-employee. He will also not be able to have business dealings with them.
• The ex-employee will also not be able to poach work from customer lists that were gained whilst working for the previous employer.

These restrictive covenants have a shelf life of about 6 to 12 months ,after which ,the ex-employee can do what he likes.

GARDEN LEAVE
By sending the ex-employee home and paying them a wage on the written understanding that they don’t take up any direct competitive employment, companies keep control but at a cost. There is also a time limit attached to such clauses.

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