A restrictive covenant is usually a clause in a contract which prohibits an employee from competing with his ex-employer after the employee has parted company with the business, or prevents the ex-employee from soliciting or dealing with customers of the business by using knowledge of those customers gained during his prior employment. Generally speaking, an employer may seek to protect the use of this information both during employment and after the employment ends through the inclusion of a restrictive covenant in the contracts of employment of senior or highly skilled staff at the commencement of the employment relationship. Express restraints may deter employees joining competitors and may warn off potential new employers.

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A takeaway of this employment restrictive covenant is that by signing up to restrictive covenants, you are agreeing not to do certain things after your employment ends. These restrictions are designed to protect your employer against you using the knowledge and information gained during your employment, for the benefit of your new employer.