“Restrictive covenant” is not a term you are likely to come across every day. It is more likely that you will have heard the term “non-compete clause”.
Broadly speaking, restrictive covenants are terms in contracts which restrict a person’s future employment in a particular way after they leave their role with their current employer.
It may restrict them from working with competitors in the same field or restrict working with certain clients and customers.
Restrictive covenants in contracts made in Scotland are enforceable if they intend to protect a legitimate business interest and are not unreasonably limiting.
If you are an employer, the specialist restrictive covenant solicitors at Jones Whyte can help you draft effective restrictive covenants to include in your contract of employment.
If you are an employee and you want to know how to challenge a restrictive covenant, or seeking advice on a term in a prospective contract of employment, contact Jones Whyte today. We will be able to advise you if the covenant is unfair and if there are grounds to challenge it.