Protecting your Jersey business with effective restrictive covenants
Employee restrictive covenants are a strategic tool for protecting your business interests when key staff move on. In Jersey, these post-employment clauses, sometimes referred to as employee contract restrictions, are commonly used to safeguard client relationships, confidential information, and commercial goodwill. Whether you are hiring senior personnel, restructuring your team, or reviewing existing contracts, well-drafted restrictive covenants can help prevent unfair competition and reduce legal risk.
Parslows LLP advises Jersey employers, including owner-managed and growing businesses, on the effective use and drafting of restrictive covenants. Our employment lawyers work across sectors to ensure these clauses are legally enforceable, commercially appropriate, and tailored to the specific role and responsibilities of each employee. We understand the importance of balancing protection with fairness and help employers achieve that balance with clarity and confidence.
Restrictive covenants typically include non-solicitation, non-dealing, non-poaching, and non-competition clauses. Non-solicitation provisions prevent former employees from approaching your clients, customers, or suppliers. Non-dealing clauses go further, restricting any interaction with those contacts, regardless of who initiates it. Non-poaching clauses protect your workforce by preventing former employees from recruiting colleagues. Non-competition clauses aim to stop former employees from joining competitors or setting up rival businesses.
In Jersey, the enforceability of restrictive covenants depends on whether they are no wider than reasonably necessary to protect legitimate business interests. The Royal Court considers factors such as the nature of the business, the employee’s seniority, the scope and duration of the restriction, and its geographical reach. If a covenant is too broad or lacks justification, it may be deemed unenforceable. That’s why precise drafting and legal advice are essential.
We help employers assess which types of covenants are appropriate for each role and how to structure them effectively. This includes reviewing the employee’s access to sensitive information, client relationships, and strategic plans.
Our team drafts restrictive covenants that are clear, proportionate, and aligned with Jersey employment law. We ensure the language used is specific enough to be enforceable, yet flexible enough to adapt to the realities of your business. We also advise on how these clauses interact with other contractual provisions, such as confidentiality, intellectual property, and notice periods.
In addition to drafting, we support employers in enforcing restrictive covenants when breaches occur. This may involve issuing cease-and-desist letters, seeking injunctions, or pursuing damages through the courts. Our litigation team works closely with our employment lawyers to provide a coordinated and strategic response, ensuring that enforcement action is both legally robust and commercially sensible. We understand the urgency and sensitivity of these matters and act swiftly to protect your interests. Our approach is pragmatic and focused on resolving disputes efficiently and discreetly, with minimal disruption to your business.
Restrictive covenants are not just legal safeguards, they are strategic tools for maintaining competitive advantage and business continuity. Used correctly, they can deter unfair competition, protect valuable relationships, and reinforce your reputation as a fair but firm employer. However, misused or poorly drafted covenants can lead to legal challenges and reputational harm. That is why expert legal advice is essential.
Parslows LLP is recognised for delivering practical, commercially astute employment law advice. We act for a wide range of Jersey businesses, from growing enterprises to established organisations. Our employment and litigation lawyers are responsive, approachable, and experienced in handling sensitive contractual matters with discretion and care.
Whether you are reviewing existing contracts, hiring new staff, or facing a potential breach, our team is here to help. Contact our Jersey employment law and litigation teams today for expert advice on drafting and enforcing employee restrictive covenants tailored to your business.
