Restrictive Covenants: What Will (and Won’t) Hold Up in Court?

Picture this: your star employee leaves and, weeks later, you spot them pitching to your biggest client. That sinking feeling? This is why restrictive covenants exist. But here’s the catch—just because it’s in the contract doesn’t mean it’ll stick in court.

The Golden Rule: Reasonableness

Courts are not fans of blanket bans. They’ll enforce a covenant only if it’s fair and genuinely protects your business interests—such as client relationships, confidential information, or team stability. Anything that looks like a power grab? It’s likely to be struck out.

What matters most:

• Legitimate Interest: You need a clear business reason, not just a desire to keep someone from leaving. 

• Proportionality: Keep scope, duration and geography tight. A six-month non-compete for a senior director? Maybe. For a junior administrator? Almost certainly not. 

• Clarity: Ambiguity is your enemy. Define what ‘confidential’ means and specify which clients or territories are covered. 

Which Clauses Actually Work?

• Confidentiality: Usually enforceable if well-defined.

• Non-solicitation & Non-dealing: Safer options- focus on clients the employee had real dealings with.

• Non-compete: The toughest to justify. Courts will allow them only when truly necessary, and for short periods  (3–6 months is common).

Drafting Like a Professional

• Avoid boilerplate- tailor covenants to the individual’s role. 

• Refresh covenants when roles change.

• Consider garden leave as a softer alternative.

• Use severable wording so one unenforceable clause does not sink the lot.

When You’re Challenged

Evidence is everything. Keep records showing why restrictions were needed- client lists, strategic access, handover notes. Judges look for context. 

Looking Ahead

Government proposals suggest a three month cap on non-competes. This is not law yet, but wise employers are already considering alternatives like longer notice periods.

How Wollens Can Help

Restrictive covenants aren’t about locking the door—they’re about closing it gently, with a clear reason. Draft with precision, keep it proportionate, and you’ll protect your business without overstepping. If you need advice on drafting enforceable clauses or defending a challenge, contact our Employment Team at Wollens today. 

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.