Restrictive Covenants: The Need to Know Basics

Restrictive Covenants

Whether in times of economic uncertainty or recovery, the need for effective restraints on employees after they have ceased active service with their employer is particularly strong. Employees may have knowledge of technology, strategic information about the employer’s business or customer contacts that they may try to use for the benefit of their new employer or business.

Employees must observe certain restrictions that are implied into a contract of employment, however, these are of a limited nature and do not generally extend to the period after termination of the contract, whereas express restrictions can. Further advantages of having express restrictions applying either during or after active service are:…

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