Employment contract with restrictive covenants

Restrictive covenants are void unless they go no further than reasonably necessary to protect a legitimate interest of the employer, which means that the covenants most employers want (no competition anywhere for a year) are the ones courts strike out and the ones that work (no soliciting or dealing with the clients you handled, for a few months) are narrower than employers like. The contract has to choose the covenants the role justifies, set the duration and scope against the employee's actual job, deal with consideration where covenants are introduced to an existing employee, and pair them with garden leave and confidentiality. Drafting for the employer, I deliver the contract in five working days for a fixed £595, written so that it can be reused for everyone in the grade.

Who this is for

Employers in England and Wales who want covenants that will hold against staff with client relationships, confidential information or influence over colleagues, and employers whose existing covenants have never been tested.

What matters in restrictive covenants

What a court will enforce and what it will strike out

A post-termination restriction is a restraint of trade and void unless the employer shows a legitimate interest (client connections, confidential information, the stability of the workforce) and that the restriction goes no further than reasonably necessary to protect it, judged at the date the covenant was entered into and by reference to the employee's role at that time; a covenant that protects the employer from competition as such, that is wider in duration, area or activity than the interest needs, or that was imposed on a junior employee in a senior employee's terms is struck out, and a struck-out covenant protects nothing.

The four covenants and what each protects

A non-solicitation clause stops the employee approaching clients; a non-dealing clause stops the employee acting for clients who approach them, which matters where clients follow; a non-poaching clause stops the employee recruiting colleagues; a non-compete clause stops the employee working for a competitor at all, and is enforced only where the other covenants would not protect the interest (typically where the employee's knowledge of confidential information cannot be policed otherwise); the contract should contain each as a separate clause, limited to the clients, prospects and colleagues the employee dealt with in a stated final period, and with the non-compete narrowed to competing businesses in the employee's field.

Duration, scope and the employee's actual role

Duration should reflect how long the employer needs to replace the employee's connection or how long the confidential information stays current (months rather than years for most roles), the area should match where the employee operated, the activity should match what the employee did, and the covenants should be drafted for the role the employee holds when they sign and revisited on promotion, because a covenant that was reasonable for a junior role is tested against that role even when the employee has become a director; the government has consulted on limiting non-competes to three months, and covenants drafted now should be defensible on that footing.

Consideration, existing employees and introducing covenants later

Covenants in a contract signed at the start of employment are supported by the employment itself; covenants introduced to an existing employee need fresh consideration (a pay rise, a bonus, a promotion) and the employee's agreement, because a covenant signed under a threat of dismissal or for nothing may be unenforceable, and a covenant imposed by a variation the employee did not accept is not a term at all; the contract for a promotion or a pay review is the occasion to introduce or widen covenants, with the consideration recorded.

Garden leave, confidentiality and the covenants' companions

Covenants work best alongside a garden leave clause (which keeps the employee out of the market during notice while paying them, with the garden leave period set off against the covenants so that the total restraint stays reasonable), a confidentiality clause defining the information protected and surviving the employment, a notice period stated in the written particulars under section 1 of the Employment Rights Act 1996 that is long enough for garden leave to do its work, an obligation to return property and data, and a clause requiring the employee to tell a new employer about the covenants; the contract should contain all of them, because the covenants are the last line rather than the first.

Enforcement, severance and the remedies

A covenant that is too wide can be saved by severing the offending words where what remains is a sensible covenant that does not change the character of the contract, and the contract should draft each restriction separately and include a severance clause, while recognising that a court will not rewrite a covenant to make it work; the remedies are an injunction, which the employer must seek promptly with evidence of breach, and damages for loss caused, and the contract should state that the restrictions are reasonable and that the employee has had the opportunity to take advice, which does not make a bad covenant good but helps a reasonable one.

What it costs

Employment contract, £595. One template you can reuse for a grade of staff. Five working days.

Staff handbook and core policies, £995. Five working days.

Buying online forms the engagement on payment. The scope is what the employment contracts and handbooks page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A bespoke contract drafted for how you employ people
• Restrictive covenants drafted at a scope a court will uphold
• Confidentiality and intellectual property provisions that put ownership where it belongs
• The statutory particulars, so the document does the job section 1 of the Employment Rights Act 1996 requires it to do
• Flexibility clauses where you genuinely need them, drafted to survive challenge
• Core policies: disciplinary, grievance, sickness absence, equal opportunities, data protection and, increasingly, AI use
• One round of amendments

What is not included

• Acting for employees
• Employment tribunal representation
• Payroll, pensions auto-enrolment and tax
• Immigration and sponsor licence work
• Day to day HR handling, disciplinaries, grievances and redundancy processes

Questions I am often asked

Can we stop an employee working for any competitor for a year?

Almost never. A non-compete is enforced only where non-solicitation and non-dealing would not protect the interest, and then for a short period in a narrow field. The contract relies on the covenants courts enforce and adds a narrow non-compete where the role justifies it.

Our senior staff have no covenants. Can we add them now?

With fresh consideration (a pay rise, a bonus, a promotion) and the employee's agreement, yes. A covenant imposed for nothing or under threat is likely unenforceable. The next pay review is the occasion.

Our covenants were drafted when the employee was junior. Do they still work?

They are tested against the role at the time of signing, so a covenant that was right for a junior role may not protect a director. Promotion is when covenants should be revisited, and the contract provides for it.

Related guidance and services

• Employment contracts and handbooks, £595, the service this page describes
• Consultancy and contractor agreements, £595
• Settlement agreements for employers, £795
• Employment contract with garden leave
• Restrictive covenants in a consultancy agreement

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.