A restrictive covenant is a promise that after you leave, you won't work for competitors, solicit customers, or use company secrets for a set period (typically 6-24 months). These clauses are legally enforceable only if they're "reasonable"—meaning they protect genuine business interests without unfairly blocking your ability to earn a living. UK and US courts regularly strike down restrictive covenants that are too broad, too long, or cover too large a geographic area. For example, a clause banning you from any IT work worldwide for 3 years would likely fail, but a clause preventing you from selling to your employer's clients in your city for 6 months might hold up.
Narrow the scope as much as possible—push back on geographic limits (why worldwide if the company only operates in one region?) and time limits (6 months is reasonable; 2 years is aggressive). Ask for specific definitions of "competitor" and "confidential information" so you know exactly what's restricted. If the clause is vague, courts may refuse to enforce it, but you don't want to rely on that—get it clear in writing now. ---
Frequently Asked Questions
What does this clause mean in simple terms?
A restrictive covenant is a promise that after you leave, you won't work for competitors, solicit customers, or use company secrets for a set period (typically 6-24 months).
Why should I care about this clause?
These clauses are legally enforceable only if they're "reasonable"—meaning they protect genuine business interests without unfairly blocking your ability to earn a living.
What are my options?
UK and US courts regularly strike down restrictive covenants that are too broad, too long, or cover too large a geographic area.
How does this affect small businesses?
For example, a clause banning you from any IT work worldwide for 3 years would likely fail, but a clause preventing you from selling to your employer's clients in your city for 6 months might hold up.