Restrictive covenants and employment contracts: what you have signed and whether it holds

Your employment contract decides what you are paid, how much notice you must give and, often, what you can do after you leave. Restrictive covenants in particular can stop you joining a competitor, contacting clients or bringing colleagues with you. Many are drafted too widely to be enforced, but you need to know which before you act. We review contracts and covenants for employees and employers. We advise employees across England and Wales by phone and video, and in person at our Manchester office.

Common restrictive covenants

• Non-compete: you must not work for a competitor, or set up in competition, for a period after leaving.
• Non-solicitation: you must not approach the employer's clients or customers to take their business.
• Non-dealing: you must not deal with those clients even if they approach you.
• Non-poaching: you must not recruit former colleagues.
• Confidentiality: you must not use or disclose confidential information. This continues without a time limit for genuine trade secrets.

When a covenant can be enforced

A covenant that restricts you after you leave is void unless the employer shows it does two things:

• It protects a legitimate business interest, such as client connections, confidential information or a stable workforce. Stopping competition for its own sake is not enough.
• It goes no further than reasonably necessary to protect that interest, in time, area and the activities it covers.

The test is applied at the date the contract was signed, so a covenant written for a junior role may not fit a later senior one and vice versa. A court can sometimes delete an unreasonable part and enforce the rest, but it will not rewrite the clause (Tillman v Egon Zehnder Ltd [2019] UKSC 32). If your employer seriously breached your contract, for example by dismissing you without the notice due, it may lose the right to enforce the covenants.

If you are leaving for a competitor

1. Send us your contract, any bonus or share scheme rules, and the offer from the new employer.
2. Do not take documents, client lists or data with you, even contacts you added yourself, until we have advised.
3. We tell you which restrictions are likely to hold, how long they run and what you can safely do in the meantime.
4. If your old employer threatens action, we respond, and where needed negotiate a release or a shorter period.

Employers can seek an injunction to stop a breach, and damages. Garden leave, where you stay employed but stay at home on full pay, can also count against the covenant period.

Changes being proposed

On 9 October 2026 the government said it will bring in legislation to limit non-compete clauses. No law has been passed and no limit has been set, so covenants are still judged under the rules above.

Contract changes and new contracts

• New job: we check the pay, notice, probation, bonus, covenants and anything unusual before you sign.
• Your employer wants to change your terms: changes need your agreement unless your contract genuinely allows them. From 1 January 2027, dismissing you for refusing certain contract changes, often called fire and rehire, will be automatically unfair in most cases.
• Missing paperwork: you are entitled to a written statement of your main terms from your first day. A tribunal can award two to four weeks' pay (£1,502 to £3,004) if it is missing and you bring another claim.

For employers

We draft contracts and covenants that will stand up, tailored to the role, and act quickly to enforce them, or defend a claim, when someone leaves. See also settlement agreements.

What it costs

The first consultation is £80 for half an hour or £200 for an hour, by phone, video or at our office. We then give you a written estimate before each stage. Typical costs for employment claims are on our fees page.

Questions people ask

Ask a question

Not sure where you stand? Ask a solicitor and we will reply by phone or email, or send an enquiry for a free initial assessment. Call 0161 222 5860, Monday to Friday, 9.30am to 5.30pm.