Drafting Post Termination Restrictions - Checklist
General
Checklist | Notes |
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The person from whom you are taking instructions in relation to the restrictions should be sufficiently senior and involved in the business on a day to day basis to be able to provide instructions on the business and the employee's role in it, the legitimate interests the restrictions should protect and the reasonableness of the restrictions. | |
Identify the legitimate business interests of the employer, that is trade secrets and confidential information, trade connection and stability of the workforce. | |
Identify whether the employee's role involves access to or control over any of these specific legitimate business interests. Only if it does will a restriction to protect that legitimate business interest be enforceable and will the remainder of this checklist be relevant. | |
If the preamble of the clause sets out the legitimate interests it is intended to protect, ensure it specifies them accurately as the court will take this into account when considering the enforceability of the restrictions. | |
Consider whether the restrictions should apply to direct and indirect acts of the employee, to ensure that the restriction cannot be avoided by the employee instructing a third party to do the restricted acts. |