Restrictive Measures in Employment Contracts:

Every company has information, customer goodwill, and other valuable assets that are considered both integral and invaluable to its success. Limiting the use of this information by employees and protecting goodwill after the term of their employment contract can be vital to the protection of a market position.

An accepted method of providing this protection is to include restrictive covenants in employment contracts, which are designed to prevent certain information being used by competitors while providing for damages should those agreements be breached. They should be clearly distinguishable from the obligation of loyalty, which is inherent to any employment contract.

The way restrictive covenants are applied differs between jurisdiction. For companies with operations in multiple locations, understanding this is of critical importance. It is also important to acknowledge that restrictive covenants will only be enforceable if they are deemed to be reasonable in terms of their scope and the fairness of the restrictions they place upon an employee.

With this in mind, IR Global brought six members of its Employment Law Group together to discuss restrictive covenants. The aim of the feature is to give members and their clients’ valuable insight into how these protections are applied across a range of jurisdictions. We also assess the enforceability of contracts containing restrictive covenants, options in the event of a breach of covenant and best practices to avoid any potential problems before they occur.

The following discussion involves IR Global members from the United States – New York and Nevada, France, England, Mexico and Australia.

Conseillers contributeurs

  • Jeremy Cousins
    Employee Benefits & Executive Compensation , Employment Law (Corporate) and Employment Law (Individuals) in Australia

    Jeremy Cousins

    silverJeremy is a silver member
  • Lionel Paraire
    Employment Law (Corporate) and Employment Law (Individuals) in France

    Lionel Paraire

    silverLionel is a silver member
    Partner, Galion
  • Laura Thalacker
    Commercial Litigation , Employment Law (Corporate) and Employment Law (Individuals) in Nevada

    Laura Thalacker

    silverLaura is a silver member
    Founding Member, Hartwell Thalacker, LTD.
  • Shilpen Savani
    Employment Law (Corporate) and Employment Law (Individuals) in England

    Shilpen Savani

    silverShilpen is a silver member
    Partner, gunnercooke llp
  • Kara Maciel
    Employment Law (Corporate) and Employment Law (Individuals) in Washington DC

    Kara Maciel

    silverKara is a silver member
    Founding Partner, Conn Maciel Carey
  • Edmundo Escobar
    Employment Law (Corporate) and Employment Law (Individuals) in Mexico

    Edmundo Escobar

    bronzeEdmundo is a bronze member