Restrictive covenant enforcement letter template

What is this for?

A restrictive covenant is a contractual agreement between an employer and an employee that restricts the employee's ability to compete with the employer or solicit the employer's clients or employees after leaving the company.

If a Company suspects that a former employee is acting in breach of those restrictive covenants, then the next step is for the Company to send a letter to remind them of their ongoing obligations. If the letter does not have the desired effect it may be necessary to take legal action.

In general, to enforce a restrictive covenant, the employer must demonstrate that the covenant is reasonable in light of the employee's job duties and the legitimate business interests at stake, and that the employer has taken reasonable steps to protect those interests.

• Employment Rights Act 1996: Provides provisions for protecting confidential information, trade secrets, and intellectual property through restrictive covenants.

• Equality Act 2010: Ensures that any restrictive covenants are not discriminatory and do not disproportionately impact protected groups.

• Data Protection Act 2018: Ensures that any employee data used in the enforcement process is handled securely and in compliance with data protection regulations.

• Common Law: The template should adhere to common law principles of reasonableness, fairness, and protecting legitimate business interests when enforcing restrictive covenants.

• Employment Contracts: The letter template should align with the terms of the employment contract and any restrictive covenants mentioned therein.

To enforce a restrictive covenant, the employer must typically demonstrate that the covenant is reasonable in scope and duration, and is necessary to protect legitimate business interests such as confidential information, trade secrets, or customer relationships.