Employee Restrictions: What is Enforceable?
To rely on a restrictive covenant you have to be able to show that it is designed to protect a legitimate business interest (e.g. goodwill or confidential information); and doesn’t go any further than is reasonably necessary to protect that interest. Usually a covenant will be limited by reference to the restricted activities, how long it lasts for and the geographical scope.
Particular considerations apply when looking at the enforceability of restrictive covenants after a TUPE transfer; in the event of a breach; and where there is a garden leave clause.
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