Restrictive Covenants
Restrictive covenants - If you happen across a restrictive covenant in a contract, what is it and why is it in place?..link
Taking out a Restrictive Covenant.
If you happen across a restrictive covenant in a contract, what is it and why is it in place?
Restrictive covenants are normally used in two areas of law but can be found in others, namely employment law and property purchase be it business or residential.
The purpose of the covenant is to limit activity, this can be to stop a business from conducting activities or protecting your interest as a seller for any future development, for example if you owned a commercial property and lived next door, you may wish to restrict the use so it does not affect you by perhaps a noise restriction.
Employment restrictive covenants will be included within the contract of employment, and will normally focus on what an employee can't do if they were to leave employment.
They are designed to protect the interest of the company, for example they can -
- Restrict the use of information.
- A non solicitation agreement - so clients cannot be poached.
- Restriction of trade, for example the employee cannot work within a certain geographic area.
Having restrictive covenants in a contract may deter a competitor from approaching or employing a member of staff, or distract an employee from looking to join a competitor.
The problem with covenants is they can be unworkable and conflict with public policy as it constitutes a restraint of trade, saying that, if the ex-employer can convince a court that the covenants do protect the companies interest and are reasonable, then it could be enforceable and we recommend that covenants should, in all cases, be drafted by an expert.
When covenants are being drawn up consideration must be given to the detail, for example, if the covenant restricts the employee for working in a certain geographic location, is the location specified?, as leaving this out or being to general by saying the, 'whole of the UK' will unlikely stand up in court.
Details are very important and omissions and generalisations could leave the covenant useless, it's also advisable to review covenants over time to ensure they are still effective.
So what happens if an employer feels the covenant has been breached?
In this case the employer can seek an injunction, and a court case will follow to assess the evidence, an employer will need to prove a loss which will normal be financial, when seeking an award for loss the employer may wish to sue the new employer rather than the employee if once again it can be proven that it was the new employers fault the breach occurred.
If you are in this situation as an employee or employer you should seek legal help.
Restrictive covenants on land and property.
It's very important when buying land or property that your solicitors check to see if restrictive covenants apply before you commit to the purchase.
Any covenant will be attached to the title which is available via the land registry; no matter how old they are they can only be removed by agreement which can be quite a process.
It's important that you realise that covenants are king, even if you have planning permission the covenant would overrule it, if the covenant said the land cannot be developed and the planners said you can, the covenant would prevail.
In addition to covenants you may come access Easements or Wayleave, Easements grant someone a right over land, normally access rights, and in the case of Wayleave it gives the right to run services under the land.
Each case is different and their are exceptions to the rules so always consult a solicitors.
related news
Agricultural Law.
link
Aviation Law Solicitors.
This is a highly specialised area of the Law and covers both aircraft and their facilities as well as many other areas detailed here.
link
Charity Law Solicitors.
As a charity it is important to understand your legal obligations and rights, a Charity Law solicitor swill be able to help with this, find Charity Law Solicitors from Solicitors.com
link
Civil Liberties and Human Rights | Solicitors.com
Solicitors.com - if you are looking to take action under the Human Rights Act, understand your rights and how a solicitor can assist you.
link
Construction and Civil Engineering Law | Solicitors.com
link
Consumer Law, Consumer problems.
We have produced a few guides to help you but would recommend that you speak to a solicitor as all situations are different.
link
Education solicitors | Solicitors.com
link
Property Abroad.
If you are looking to buy a property abroad you will need expert legal advice, this section details services provided, and offers guidance on how to find a solicitor for your needs.
linkrecent articles
Flying Freehold
What is a Flying Freehold and should it matter?..
linkProperty Ownership.
Property Ownership - Tenants in Common or Joint Tenancy?
Buying a property with a friend or partner, is one of the most exciting things but, with a house purch..link
Employment Contracts
Everyone who is working as an employee should have an employment contract and as with all contracts this sets out the terms of the employment, and will include ..link
Gig Economy - Rights for workers.
Hermes become the first major company to make concessions to 'Gig..
linkGovernment to introduce New Homes Ombudsman
The government announces a New Homes Ombudsman to protect consumer right...link
Employment Law Solicitors for Employers.
Employment Law Solicitors for Employers. If you're the employer of people, you want excellent solicitor's representation that giving expert advice...link
Neighbour Disputes | Nuisance Neighbours
Unfortunately, not everyone is respectful in life, most of the time we just move on and keep our opinion to ourselves, but when that comes to where we live you ..link
Government to introduce New Homes Ombudsman
The government announces a New Homes Ombudsman to protect consume..
linkGig Economy - Rights for workers.
Hermes become the first major company to make concessions to 'Gig Workers'...link
Computer & IT Law
Computer and IT Law.
Computer Law is concerned with controlling and securing information stored on and transmitted between computers. Computer networks contain..link
The legal rights of unmarried couples.
The legal rights of unmarried couples, regarding property. - In the event of the breakup of a relationship where the couple are not married what happens to the ..link
Is there anything wrong with this page? - any amendments will receive accreditation - email us link
Solicitors.com are not a firm of solicitors, and any content on the site should not be used in substitute for obtaining Legal advice from a solicitor regulated in the UK, Solicitors.com recommends that you contact a firm of solicitors to discuss your individual legal requirement. Whilst we strive to bring you accurate up to date content, all content on this site is not legal advice and is not guaranteed to be correct. Use of this site does not create a client relationship.
Information by area of law
Conveyancing Solicitors.
Step by step guide to help you understand the process of Conveyancing and moving.
link.jpg)
Criminal Solicitors.
We have put together a few guidance notes for your help with Criminal law matters, if you require a solicitors please use the search facility or ask a question.
link
Commercial law.
If you are looking for a commercial solicitor understand your options by contacting one of the 100s of commercial law firms on solicitors.com
link
Clinical or Medical Negligence Solicitors
If you are considering making a claim for Medical Negligence understand your rights and the process, find a medial compensation solicitor via solicitors.com.
link
Personal Injury Claims.
If you have suffered an injury and are looking to make an accident claim for compensation, understand how a personal injury Solicitors can help make you injury claim for you.
link
Debt Collection Solicitors.
The amount of money owing may dictate the route you take to reclaim your money, we recommend that you discuss your situation with a solicitor, or you can call the CAB on 08454 04 05 06.
link
Dental Negligence Solicitors
To undertake a dental negligence claim you must have sustained an injury or damage, as a result of the dental treatment understand the options available to you.
link
Family Law Solicitors.
Family Law Solicitors can help you resolve the problems which may arise in the break-up of relationships, including financial issues and matters concerning any children.
link
Motoring Offences Solicitors.
Will be able to assist on all areas of Motoring Law for Example Drink Driving, Dangerous Driving, Careless Driving, Totting Up, Speeding, Driving Without Insurance motor offences.
link
Will & Probate
Find a solicitor that can assist with wills, probate and estate planning in your area.
link