Restrictive covenants: overview of enforcement and remedies

by Practical Law Employment

A Practice Note that provides an overview of the remedies available to an employer when seeking to enforce post-termination restrictive covenants against a former employee. This Practice Note details the process of seeking injunctive relief, which is usually the primary remedy in such cases. It examines the principles for granting an interim injunction (known as the American Cyanamid principles), including whether there is a serious issue to be tried, if damages are an adequate remedy, and where the balance of convenience lies. This Practice Note also addresses the other factors the court may consider when determining whether to exercise its discretion to grant an injunction. In addition to injunctions, it explores alternative remedies such as damages, undertakings, and the use of speedy trials. The guidance extends to actions against third parties, including a former employee's new employer, through economic torts like inducing a breach of contract and unlawful means conspiracy.