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Breaches of Restrictive Covenants

Breaches of restrictive covenants and confidentiality

Disputes involving restrictive covenants and confidentiality obligations are among the most sensitive and high-stakes issues in employment law. They often arise when an employee leaves a role, particularly in senior or client-facing positions, and concerns are raised about the use of confidential information, client relationships, or business contacts.

Restrictive covenants are contractual clauses designed to protect an employer’s legitimate business interests after employment ends. These may include restrictions on working for competitors, soliciting clients or customers, or poaching colleagues for a set period of time. Confidentiality obligations also continue beyond employment and prevent the misuse or disclosure of sensitive business information.

Disputes can arise where there is uncertainty about what restrictions apply, whether they are enforceable, or whether an employee’s new role or activities breach those terms. These matters often require careful review of the contract wording, the employee’s role, and the specific circumstances of departure and subsequent employment.

For employers, these issues can have a significant impact on business protection, particularly where there is concern about client loss or competitive advantage. For employees, it is important to understand what they are permitted to do after leaving a role to avoid inadvertent breaches that could lead to legal action.

At Ellis-Fermor & Negus, we provide clear, practical advice for both employers and employees on restrictive covenants and confidentiality disputes. We help clients understand their contractual obligations, assess the strength of any restrictions, and explore options for resolution.

Our aim is to provide balanced, outcome-focused guidance that protects business interests where appropriate while ensuring employees understand their rights and limitations when moving between roles or starting new employment.

 

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Darren Kelly

Darren is the Head of our Dispute Resolution team and has over 20 years’ experience in Dispute Resolution. Darren qualified as a Solicitor in 1999 after reading Law and undertaking the Legal Practice Course at the University of Sheffield. He worked for a time as a legal clerk before joining Ellis-Fermor & Negus in 1998…

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Ben Bourne is one of our directors and works within our Commercial Litigation and Charity Law departments. Ben is a member of the Charity Law Association and has also served on a number of Charity Trustee Boards.

01159 221 591

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Ben Bourne is based at our Beeston Office.

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Dylan is a Solicitor in the Litigation department at our Ripley office. Dylan Studied LLB Law undergraduate degree at the University of Nottingham. He then completed the Legal Practice Course in the first intake at the University of Law in Nottingham. Dylan lives in Beeston and enjoys running in his free time, especially in Wollaton…

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Charlotte qualified as a Solicitor in 2025 having joined the firm as a trainee in 2023. Prior to that, she studied LLB Law at the University of Nottingham, graduating in 2022 with a first. She then completed the LLM Legal Practice Course at Nottingham Law School. Charlotte provides advice on a range of civil disputes…

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Charlotte Price is based at our Long Eaton Office.

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Employment Law FAQs – Restrictive Covenants & Confidentiality

Disputes frequently occur at the end of employment, often immediately after a departure, and can escalate rapidly if not handled correctly. Common scenarios include:

  • An employee joining a competitor or starting a competing business.
  • Allegations that confidential information or trade secrets have been misused.
  • Contact with clients, suppliers, or colleagues in breach of post-termination agreements.
  • Disclosure of business plans, pricing, or sensitive data.

Because timing is critical, early, specialist advice can prevent disputes from escalating, protect business goodwill, and reduce financial or reputational risks for all parties.

Advice for Employers

Employers often seek advice when they suspect that:

  • Restrictive covenants are being breached.
  • Confidential information has been misappropriated or disclosed.
  • Clients, customers, or staff are being solicited by a former employee.
  • Business goodwill or commercial interests are at risk.

Our guidance focuses on:

  • Assessing enforceability – not all restrictive covenants are automatically enforceable.
  • Taking swift but proportionate action to protect the business without overreacting.
  • Balancing risk, cost, and reputation, ensuring that any intervention is legally sound and commercially sensible.

We help employers understand the strength of their position and the likely outcomes of enforcement, including negotiation, undertakings, or, if necessary, court proceedings.

Employees and senior executives may face allegations of breach of restrictive covenants or confidentiality obligations. Our team provides support to those who:

  • Are accused of breaching non-compete, non-solicitation, or confidentiality clauses.
  • Require clarity on what they can lawfully do after leaving employment.
  • Need urgent advice before starting a new role or business.
  • Want to avoid unnecessary escalation of disputes.

We review employment contracts and agreements, assessing:

  • Whether restrictive covenants are reasonable and enforceable.
  • The implications for new employment or business ventures.
  • Get advice before or after leaving employment
  • Strategies to reduce legal and financial risk, including negotiation or clarification of obligations.

Restrictive covenants are clauses in an employment contract that aim to protect the employer’s legitimate business interests. Common examples include:

  • Non-compete clauses – restricting work for competitors.
  • Non-solicitation clauses – preventing contact with clients, customers, or staff.
  • Non-dealing provisions – restricting business dealings with certain entities.
  • Confidentiality obligations – protecting trade secrets, pricing, or other sensitive information.

We assess each case individually, considering factors such as:

  • Employee role and seniority.
  • Geographic or temporal scope of the covenant.
  • The legitimate business interests being protected.

Not every restrictive covenant is enforceable, and early legal advice is crucial to avoid unnecessary disputes

Many disputes can be resolved without going to court. Our approach focuses on pragmatic, commercially sensible solutions, including:

  • Early negotiation and settlement to avoid litigation costs.
  • Correspondence and clarification of positions between parties.
  • Undertakings or agreements to manage obligations and protect business interests.
  • Court or Tribunal proceedings when necessary, with clear guidance on likely outcomes.

By acting quickly, employers and employees can manage risks, protect relationships, and reduce costs.

Time is critical in these disputes. Delays can increase the risk of:

  • Loss of confidential information or clients.
  • Escalation into litigation, which is expensive and damaging to reputations.
  • Breaches of obligations that could jeopardise enforceability.

Our team provides:

  • Rapid assessment of contract terms and enforceability.
  • Practical advice tailored to your specific employment or business circumstances.
  • Step-by-step guidance on next actions and escalation options.

We provide transparent, proportionate advice from the outset:

  • Clear guidance on costs and risk.
  • Detailed options before any escalation or formal action.

Our focus is on achieving the best outcome efficiently, without unnecessary legal or reputational risk.

 

Yes. We provide specialist advice and representation for both employers and employees in matters relating to restrictive covenants, non-compete clauses, non-solicitation agreements, and confidentiality obligations.

  • For employers, we assist in drafting enforceable clauses, enforcing breaches, and protecting business interests such as confidential information, client relationships, and intellectual property.
  • For employees, we advise on the implications of restrictive covenants before resigning or joining a competitor, ensuring you understand your obligations and potential risks.

Acting for both sides allows us to provide balanced, practical guidance, whether you need to protect your business or safeguard your career. Early legal advice can prevent costly disputes and reduce the likelihood of Employment Tribunal or court proceedings.

No. The enforceability of restrictive covenants depends on several factors, including:

  • The reasonableness of the restrictions in terms of geographic area, duration, and scope of activity
  • The nature of the employee’s role and access to confidential information or sensitive clients
  • The legitimate business interests the employer seeks to protect, such as trade secrets, client relationships, or goodwill
  • How the covenant is drafted and whether it is clear and proportionate

Courts scrutinise restrictive covenants carefully, and overly broad or unfair clauses may be deemed unenforceable. Professional advice ensures that contracts are practical, enforceable, and legally compliant, reducing the risk of disputes.

Yes. Seeking legal advice before resigning or accepting a new position is essential if your contract includes restrictive covenants or confidentiality obligations. Early guidance can help you:

  • Understand your contractual obligations and potential risks
  • Negotiate amendments or waivers if necessary
  • Plan your next career move without breaching your obligations
  • Avoid costly legal action from your former employer

Pre-emptive advice protects your position, preserves professional relationships, and ensures that you can make career decisions confidently.

Often, yes. Many disputes over restrictive covenants, non-compete clauses, or confidentiality breaches are resolved without formal litigation. Possible solutions include:

  • Negotiation between the parties to reach a mutually acceptable outcome
  • Entering into undertakings or agreements to clarify the scope of obligations
  • Mediation or alternative dispute resolution to settle the matter efficiently

Resolving disputes out of court can save time, reduce costs, and preserve professional reputations for both employers and employees. Legal guidance ensures that any settlement is legally binding and protects your interests.

Yes. Restrictive covenant and confidentiality disputes can often involve urgent matters, such as:

  • Employees joining competitors unexpectedly
  • Alleged misuse of confidential information
  • Immediate threats to client relationships or business goodwill

We provide rapid, practical advice to protect your interests, draft interim undertakings, and manage urgent communications or court applications where necessary. Early intervention can prevent irreparable damage and avoid lengthy and costly court proceedings

Common restrictive covenants include:

  • Non-compete clauses: Restricting an employee from working for competitors or starting a competing business for a set period
  • Non-solicitation clauses: Preventing employees from soliciting clients or customers after leaving
  • Non-poaching clauses: Restricting approaches to colleagues or staff from the former employer
  • Confidentiality clauses: Protecting sensitive business information, trade secrets, and intellectual property

Understanding the scope and enforceability of each clause is critical before taking action, whether you are an employer seeking to enforce a clause or an employee planning a career move.

The enforceable period of a restrictive covenant is limited by reasonableness. Courts typically consider:

  • The length of time necessary to protect legitimate business interests
  • The impact on the employee’s ability to work and earn a living
  • Industry norms and the seniority of the employee’s role

Clauses that are excessively long may be partially or wholly unenforceable, so careful drafting and tailored legal advice are essential to create clauses that can stand up in Court if challenged

If you receive allegations of breaching a restrictive covenant or confidentiality agreement:

  • Do not ignore the claim – prompt legal advice is crucial
  • Gather all relevant documentation, contracts, emails, and evidence of your actions
  • Avoid making statements or admissions without guidance
  • Consider negotiation, settlement, or mediation to resolve the dispute quickly

A solicitor can assess the strength of the claim, advise on your options, and represent you to minimise potential liability.

Yes, employers may seek to enforce restrictive covenants after an employee leaves, provided the clauses are reasonable and legally enforceable. Enforcement may involve:

  • Court injunctions to prevent specific activities
  • Claims for damages if a breach has caused financial loss
  • Negotiation or compromise agreements to avoid litigation

Employers should ensure that restrictive covenants are well-drafted, proportionate, and backed by clear evidence of the legitimate business interests being protected.

We combine employment law expertise with practical, commercially aware advice. Our approach includes:

  • Acting for both employers and employees to provide balanced guidance
  • Drafting, reviewing, and enforcing restrictive covenants and confidentiality agreements
  • Advising on urgent matters to prevent irreparable harm
  • Representing clients in negotiations, mediations, or court proceedings
  • Providing clear, plain-English advice tailored to your industry and circumstances

Our goal is to protect your business or career while resolving disputes efficiently, cost-effectively, and with minimal disruption.

If you need practical, clear, and timely advice on restrictive covenants or confidentiality obligations, our employment law team is ready to help.

• Phone:

0115 972 5222 (Long Eaton)

0115 896 3390 (West Bridgford)

0115 922 1591 (Beeston)

01773 821665 (Belper)

01773 744744 (Ripley)

• Email: infomation@ellis-fermor.co.uk

• Online Enquiry: ellis-fermor.co.uk/contact-us

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