What typical restrictive covenants might appear in your employment contract?
The types of post termination restrictive covenants which you may typically find in your employment contract are:
- Non- Competition Clause – This seeks to prevent you from working for a competitor in a similar role to the one you previously held, and also prevents you from setting up a competing business.
- Non-Solicitation Clause – This imposes a duty not to approach your ex-employers customers or prospective customers. Usually, this is with specific reference to those customers you had direct dealing with for the 12 month period prior to your termination date.
- Non-Dealing Clause – This is more onerous than a non-solicitation clause in that it prevents you from dealing with your ex-employers customers whether you encourage them or not. So if they approach you, the restriction would bite in the same way as it would by you soliciting them.
- Non-Poaching Clause – This aims to prevent you from taking key employees with you to your new employment or business.