Confidentiality And Restrictive Covenant Agreement

The High Court examined the applicability of restrictive agreements against an outgoing commercial director of a pharmaceutical company whose contract included competition bans and non-invitation restrictions of 12 months and who had accepted a position at Pfizer. As a sales manager, the employee had access to important confidential information, including customer information, products and sales strategies. An employer may restrict or deny access to confidential information and/or to customers, suppliers and customers, who have resigned and are preparing for notice, by placing the worker on a gardening holiday. A garden leave clause requires a worker to serve his or her notice at home. During the gardening leave, the worker would be entitled to his full salary and benefits, while at the same time he cannot work for others and he continues to have obligations in a fair constitution and confidentiality. The employer, when imposing garden leave, aims to maintain the worker`s loyalty while ensuring that the employee does not maintain contact with customers, suppliers, customers and confidential information provided by the employer. For a restrictive alliance to be applicable, it must protect the “legitimate business interests” of the company. It is worth clarifying the reason for its implementation and the specificity of the commercial interest it seeks to protect. Restrictive alliances can be considered unenforceable if they are considered “too broad”, i.e.

they have an unfair restriction on a worker`s market capacity. Therefore, if a confederation goes beyond what is necessary to protect the commercial interest in question, it may be found to be unenforceable. If an employer has substantially violated a worker`s contract, it may also be possible to nullify the restrictive agreements. As a company, you want provisions that you can finally count on if necessary, so it`s important to develop them carefully from the beginning. All three types of agreements are designed to prevent someone from taking something from a company – customers, employees, businesses in general, proprietary products or business secrets. Each restrictive pact is different and its applicability depends on the particular circumstances and how the clause is formulated. If a person does not agree to accept a new contract with restrictions, it may be possible for an employer to insist that a worker accept a restrictive contract and dismiss the worker for SOSR-related reasons (for other essential reasons) if he refuses. This will depend on whether the employer acted reasonably or inappropriately in treating that reason as sufficient to dismiss the worker. The invitation of the employer`s clients or customers (non-call agreements) To work for a competitor or to operate a competing activity in its own name (non-competitive agreements) Restrictive agreements after termination of employment will generally be used to prevent a former employee: the duration of the restriction will often be an important consideration when drafting these agreements.