Employers commonly use post-employment restrictive covenant clauses (“Restrictive Covenant Clauses”) to protect them from employees soliciting the employer’s customers and retaining confidential information after having their employment with the Employer terminated.
The usual restraints which operate at the expiration of the period of employment include restraining a former employee from “soliciting” or “enticing” the former employer’s:-
The restrictions generally imposed on a former employee are the following:-
The common law position in relation to Restrictive Covenants was set out in the leading Jersey case of Rossborough v Boon & Aziz.
In determining whether a restraint is reasonably necessary to protect the employer’s interests, the Royal Court will have to consider the following factors:-
The Royal Court will also compare the employer’s protectable interest with the relevant employee characteristics to evaluate whether the Restrictive Covenant goes beyond what is necessary to safeguard the employer’s protectable interest. In effect such a clause is void or unenforceable, unless it imposes no greater restraint than that which is reasonably necessary for the protection of the legitimate interests of the party seeking to uphold it.
It is important as an Employer to carefully consider Restrictive Covenants. To adequately protect your Jersey business it is essential to consider the employee and not just use a standard, off-the-shelf clause, as this may not be good enough and your business could be at risk as a result. It is a specialist area of employment law.
Parslows Jersey employment lawyers are experts in restrictive covenant drafting and analysis. If you have any issues with an employee or want specialist advice on restrictive covenants, contact our experts today.
Christopher Austin | Head| Employment Law
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