Letter enforcing restrictive covenants
Written with our partners at:
What’s a letter enforcing restrictive covenants and when do you need it?
Restrictive covenants may be written into employment contracts to agree what an employee can or can not do, either during the term of their employment and/or for a certain amount of time afterwards.
Use this letter when a former employee has acted in a manner that breaches the enduring contractual commitments they have to your business even though they’ve left your employ.
These enduring contractual restrictions are called ‘restrictive covenants’ and they can cover a variety of problematic activities in which your former employee could be engaging – from trying to/succeeding in:
• enticing away your staff
• enticing away your customers or key trading partners
• setting up in competition to you (having essentially copied your blueprint)
• taking on a role with one of your competitors
• representing themselves as still connected with your business after they have left
This is an area that's often stressful for both you and the ex-employee who has breached their contractual obligations to you.
This letter, the threat of action and the evidence suggesting that the ex-employee is in breach of their legal obligations should hopefully be sufficient to bring their unlawful actions to an end.
Our expert partners at Wilkes advise handling this situation calmly and factually. Getting an expert view on your rights and what you do next if the employee resists your requests in this letter, as well as any further action you inform them that you want to take, on completion of your investigation, is highly advisable.