What types of covenants can be recognized in the United Kingdom?
The following types of covenants can be used in the U.K.:
- Non-competition covenants
- Non-dealing covenants
- Non-solicitation covenants
- Confidentiality Information covenants
- Intellectual property covenants
Can these covenants be enforced? How are they enforced?
Yes, covenants can be enforced. However, the following criteria should be met:
- The covenant is reasonable
- The covenant protects legitimate business interests
- The covenant’s duration is no longer than what is necessary to protect said interests
Does my supported employee need to be compensated in return for restrictive covenants?
No, unless a legal dispute arises as a result of the covenant and the court awards the supported employee financial damages.
