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Dispute resolution

Restrictive covenant solicitors

Protect your business when people leave, or push back when a covenant goes too far.

In short

Ansons Law's restrictive covenant solicitors advise employers, employees and businesses on non-compete, non-solicitation, non-dealing and non-poaching clauses: whether a covenant is enforceable and how to enforce or challenge it. The courts start from the view that a covenant is an unenforceable restraint of trade, unless it protects a legitimate business interest and goes no further than reasonably necessary. The most effective remedy is often an urgent injunction, so speed matters.

The legal test
A legitimate business interest, protected no further than reasonably necessary
Most effective remedy
Often an urgent injunction, so act within days
Business sales
Seller covenants get more latitude than employment covenants
Head of dispute resolution
Jason Alcock, Director

Act within days, not weeks

The most effective remedy is often an urgent injunction, and delay can undermine it. Whether you are enforcing a covenant or facing one, the position needs assessing quickly and clearly.

What is a restrictive covenant?

A restrictive covenant is a clause that limits what someone can do after they leave, for example competing with the business, approaching its clients or poaching its staff.

When a key employee leaves, restrictive covenants are often what stands between your business and that person taking clients, staff or confidential information with them. Confidential information and trade secrets can also be protected separately, even alongside covenant issues.

What makes a restrictive covenant enforceable?

As a starting point, the courts treat these clauses as unenforceable restraints of trade, unless the business can show the covenant protects a legitimate business interest and goes no further than is reasonably necessary to do so.

That makes enforceability very fact-specific. A covenant that is too wide in what it stops, how long it lasts or where it applies risks being struck down, while a carefully drafted one protecting genuine interests is far more likely to hold. Well-drafted covenants at the outset are far easier to enforce than ones added as an afterthought.

What if a covenant is being used against you?

For employees and new employers facing covenants, the same principles cut the other way. A covenant that overreaches may be challengeable, and a clear-headed early assessment can avoid an unnecessary fight.

We act for employers, employees and businesses, advising on whether a covenant is enforceable, what can be done to protect a business and how to respond when a covenant is being used against you.

Going through papers at the round table in the Ansons Law office in Lichfield
What we do

What our restrictive covenant solicitors can help with

Whether you are protecting your business or challenging a covenant, we help you act fast.
  • Non-compete clauses
  • Non-solicitation of clients and customers
  • Non-dealing clauses
  • Non-poaching of staff
  • Confidentiality and protection of trade secrets
  • Enforcing covenants against a departing employee
  • Defending against covenants you are accused of breaching
  • Springboard injunctions
  • Covenants in business sale and shareholder agreements
  • Drafting and reviewing covenants
  • Urgent injunctions and undertakings
  • Negotiated resolutions
Questions

Restrictive covenant questions

Are restrictive covenants actually enforceable?

They can be, but they are not automatically. A court starts from the view that they are an unenforceable restraint of trade, and the business has to show the covenant protects a legitimate interest and goes no further than reasonably necessary. It is very fact-specific.

An employee has left and is approaching our clients. What can we do?

If they are bound by a valid non-solicitation or non-dealing covenant, you may be able to enforce it, potentially through an urgent injunction. Speed is important here, so it is worth taking advice straight away.

I have been told I am breaching my old employer's covenants. What now?

Do not ignore it, but do not assume the covenant is valid either. Many covenants are drafted too widely to be enforceable. We can assess your position and help you respond before it escalates.

How long can a covenant last?

There is no fixed rule, but the shorter and more targeted a covenant is, the more likely it is to be enforceable. Periods of several months are common, while very long restrictions are harder to justify.

What is a springboard injunction?

It is a court order designed to remove the unfair advantage someone has gained by misusing confidential information or breaching their obligations, putting the parties back on a level footing. These are used in more serious cases.

Can covenants protect us when we sell or buy a business?

Yes. Covenants on a seller are common, and the courts tend to give them more latitude than employment covenants because they protect the value of what the buyer has paid for. They still need careful drafting.

Accreditations and awards

Talk to a restrictive covenant solicitor

Whether you are enforcing a covenant or facing one, tell us what has happened and when. We will explain where you stand and help you respond before it escalates.

Offices

Our offices

Our dispute resolution team works from our offices across the Midlands. Every office can take your enquiry.
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