Want to protect your business? Know how to enforce a restrictive covenant

18 March 2026

When you take on new employees and skilled workers, you are not always thinking about what happens if and when they decide to move on.

Your staff can build valuable client relationships and gain insight into how your business operates over time.

However, when they leave, there is always a risk that knowledge or contacts could go with them.

If you are concerned about how to protect your business from these situations, you may look to enforce a restrictive covenant.

What is a restrictive covenant?

A restrictive covenant is a clause in an employment contract that limits what an employee can do during or after their employment ends.

These clauses prevent employees from engaging in activities that could harm the business, such as joining a competitor or targeting clients.

There are several types of restrictive covenants used by employers:

• Non-compete clauses
• Non-solicitation clauses
• Non-dealing clauses
• Confidentiality clauses
• Non-poaching clauses

When these clauses are used correctly, they can protect your business assets, such as trade secrets, pricing strategies, customer contracts and specialist knowledge.

They can also act as a deterrent for employees who are considering taking colleagues or customers with them when moving to a new role.

When are restrictive covenants enforceable?

In the UK, restrictive covenants are only enforceable if they are considered reasonable and necessary to protect a legitimate business interest.

The courts will also look at the duration of the restriction, the geographical scope of the covenant and the employee’s role and seniority within the business.

Even if you have attempted to take the right steps to protect your business, the drafting of your covenant could let you down.

Restrictions that are too long or too general are likely to be struck down by a court.

This is why having legal support from the start can help ensure your covenant is drafted correctly and that the specific activities prohibited are clear.

How can employers enforce restrictive covenants?

If your former employee breaches a restrictive covenant, it is crucial that you act quickly and this may involve legal action.

This could include sending a cease-and-desist letter or contacting their new employers to establish whether they may have encouraged or induced the breach.

You may also need to seek written undertakings confirming that your employee will comply with the agreed restrictions and this is often given by a solicitor.

If the issue is more serious or cannot be resolved, it might be necessary to apply to the court for an injunction to stop the activity immediately or to claim damages if the breach has caused financial loss.

We know how important it is to safeguard your business’s interests and seeking legal advice can help assess the situation and determine the most appropriate and effective course of action.

How can we help enforce your restrictive covenant?

We don’t want any small mistakes at the contract stage to be the cause of your company’s assets being lost or revealed.

Our professional team is here to help you draft a tailored restrictive covenant and advise on the best strategy if a breach occurs.

We can also assist with enforcement action, including applying for court injunctions where necessary.

We know how upsetting a breach of trust from an employee is and we want to help you set up robust covenants from the get-go.

For further advice on how to enforce a restrictive covenant, contact our Employment Law team.