Atypical restrictive covenants
It is customary for employers to seek to protect their business interests, such as market position and stability of their workforce, on the departure of an employee. Often, protection is achieved through direct restraints of trade such as restrictive covenants (see Practice note, Restrictive covenants and garden leave). Sometimes, other types of contractual terms may be used (or may be viewed as being used) to limit unfair competition. This note looks at contractual clauses which can amount to indirect restraints of trade and "atypical" restrictive covenants.