Restrictive covenants in employment: What they mean and what to do next

What is a restrictive covenant?

A restrictive covenant is a legally binding clause that restricts certain activities after employment ends.

However, the key point many workers miss is this:

A restrictive covenant is not automatically enforceable just because it is written in your contract.

For it to be valid under UK law, it must:

• Protect a legitimate business interest
• Be reasonable in scope
• Be limited in time
• Be proportionate to your role

If it fails these tests, it may not be enforceable.

What is a non competitive agreement?

A non competitive agreement, often called a non-compete clause, is one of the most restrictive types of covenant.

It prevents you from:

• Working for a competing company
• Starting a competing business
• Operating in the same industry

These are the hardest for employers to enforce because they directly affect your ability to earn a living.

For example:

A six-month restriction in a senior leadership role may be reasonable.
A 12-month restriction for a junior employee is unlikely to be upheld.

Types of restrictive covenants explained

Understanding the type of clause you are dealing with is critical.

Non-compete clauses

Prevent working for competitors or setting up a similar business.

Non-solicitation clauses

Stop you from approaching former clients or customers.

Non-dealing clauses

Prevent any business interaction with former clients, even if they contact you first.

Non-poaching clauses

Restrict you from recruiting former colleagues.

Confidentiality clauses

Prevent use or disclosure of sensitive company information.

Each type is assessed differently when it comes to enforcement.

How enforceable are restrictive covenants in employment contracts?

This is one of the most important questions for UK workers.

The direct answer:

Restrictive covenants employment clauses are only enforceable if they are reasonable and necessary to protect the employer’s legitimate business interests.

Courts will assess:

• Your role and seniority
• Your access to sensitive information
• The length of the restriction
• The geographic scope
• The impact on your ability to work

If a clause goes beyond what is necessary, it is likely to be unenforceable.

Real-world example

A sales manager with access to key clients leaves a company.

Their contract states:

• No working for competitors within 10 miles
• Duration: 6 months

This may be considered reasonable.

However, if the clause said:

• No working in the same industry anywhere in the UK
• Duration: 12 months

This would likely be challenged as excessive.

How to get around restrictive covenants

If you are facing restrictions, there are practical steps you can take immediately.

Step 1: Review your contract carefully

Check:

• The exact wording
• The duration
• The geographic limits
• The type of restriction

Small details can significantly affect enforceability.

Step 2: Assess whether it is reasonable

Ask yourself:

• Does this genuinely protect the business?
• Is it too broad for my role?
• Does it prevent me from earning a living?

If the answer is yes, there may be grounds to challenge it.

Step 3: Consider negotiation

Many restrictive covenants can be negotiated.

This can include:

• Reducing the time period
• Narrowing the scope
• Agreeing on specific limitations

Employers often prefer negotiation over legal action.

Step 4: Look at alternative roles

You may be able to:

• Work in a different sector temporarily
• Take a role outside the restricted area
• Avoid specific clients or accounts

This allows you to remain compliant while moving forward.

Step 5: Seek professional guidance

If the situation is complex, it is advisable to speak with an employment law specialist.

The Workers Union can help you understand your position and prepare your next steps clearly and practically.

What happens if you breach a Restrictive Covenant?

If an employer believes you have breached a covenant, they may:

• Seek an injunction to stop your new role
• Claim damages
• Take legal action against you

However, enforcement is not automatic.

The employer must prove:

• The clause is valid
• The breach has caused harm
• The restriction is reasonable

Many cases do not proceed if the clause is weak.

Key warning signs a clause may not be enforceable

You should question the clause if:

• It applies to all roles regardless of your position
• It lasts longer than 6–12 months
• It covers a very large geographic area
• It prevents you from working entirely in your industry
• It is vague or unclear

These are common indicators of overreach.

What should you do right now?

If you are currently affected by restrictive covenants, take these actions immediately:

1. Locate your employment contract
2. Identify the specific restrictive clauses
3. Check the duration and scope
4. Compare it to your role and responsibilities
5. Avoid taking action that could trigger a dispute
6. Seek guidance before accepting a new role

Acting early gives you more control and reduces risk.

Why this matters for UK workers

Restrictive covenants can significantly impact:

• Your ability to change jobs
• Your earning potential
• Your career progression

But many workers assume they are automatically binding when they are not.

Understanding your rights allows you to make informed decisions rather than being restricted unnecessarily.

How The Workers Union supports you

The Workers Union focuses on practical, immediate support for UK workers facing real workplace issues.

If you are dealing with restrictive covenants employment concerns, support includes:

• Reviewing your contract terms
• Explaining your legal position clearly
• Helping you understand risk before making a move
• Supporting communication with your employer
• Preparing documentation if needed

The aim is simple: help you move forward confidently with clear, accurate guidance.