Restrictive covenants (or a post termination restriction) are covenants which are enforced into an employee’s contract whereby an employee agrees not to do certain things after he or she leaves the company. The main types of restrictive covenants are:
1. Non-compete covenants: This covenants seek to prevent an ex-employee from competing or working for a competitor for a set period of time or working in a specified geographic area.
2. Non-solicitation covenants: This prevents the former employees from, impending customers or employees to work with them instead of the former employer. This type of covenant can also be known as ‘non-poaching of employees.’ And lastly
3. Restrictions on the use of confidential information: This type of covenants prohibits the former employee from using confidential information acquired while working for the previous employer.
The basic legal view is that that the covenants are void under public policy. The employer has the burden to show that the covenants are necessary to protect his or her legitimate business interests.
If you are subject to a restrictive covenant it will restrain your actions in your professional life so therefore it is mandatory for you to know your position before you make plans for the future.
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