A restrictive covenant in a contract or terms and conditions of work is likely to be under a heading of ‘ restrictive covenants ’ or ‘ post-termination restrictions ’. It could state that , for example , once an employee has left the organisation they are not allowed to approach the employer ' s customers for business or work for a competing business within 10 miles . Such a clause should also state how long the restriction lasts – usually this would be 3 – 6 months .

Employees will usually have to adhere to these restrictions if they appear in their agreed employment contract . This includes restrictions in any other agreed documents , such as a deal to settle a dispute with an employer . However , if there are no restrictions in the agreed documents , an employee will be free to work wherever they like at the end of their employment .

If an employee does not have a written contract , it would be difficult for their employer to successfully claim that a verbal agreement included a restriction . Restrictive covenants must be precise and specific , so it is unlikely that an employee would be expected to adhere to one that is not written down .

In additional to being specific , restrictive covenants must also be reasonable . No matter what is in an employment contract , an employer cannot stop an employee taking a new job unless it could lose the employer money .

Therefore , it might be considered reasonable to restrict an employee from taking customers to their new employer when they leave , or to restrict them from starting a competing business in the local area . However , a restriction on an employee might not be considered reasonable if :

• it lasts for more than 6 months

• it encompasses areas where the employer does not do business , for example , stating a whole region but the employer ' s customers are from only one town

• it applies to jobs in businesses that do not compete with the employer , such as preventing an employee taking any other sales job , even if that job entails selling entirely different products

• it means the employee would not be able to find a new job at all .

If there is a restrictive covenant in your employment contract and you are changing jobs , there are a number of factors to consider – and potentially negotiate – with your old and new employers .

Negotiating with an old employer

You might be able to persuade your old employer to ignore a restriction , or at least make it shorter in duration . To enforce a restriction , they would need to go to court to prove the restriction is reasonable . This is time-consuming and can be expensive , so they might prefer to compromise .

You could start by explaining to your old employer why you think the restriction should not apply . Explain why your new job will not harm their business , as they might have misunderstood your new job or place of work .

6 Veterinary Nursing Journal