Restrictive covenant enforcement letter
Our Restrictive Covenant Enforcement Letter Template safeguards against violations, protecting business interests and maintaining contractual agreements.
If it is alleged that a former employee has breached a restrictive covenant, send this model letter to request them to provide written agremeent that they will cease.
10 mins
326
What is a Restrictive covenant enforcement letter?
A restrictive covenant is a contractual agreement between an employer and an employee that restricts the employee's ability to compete with the employer or solicit the employer's clients or employees after leaving the company.
If a Company suspects that a former employee is acting in breach of those restrictive covenants, then the next step is for the Company to send a letter to remind them of their ongoing obligations. If the letter does not have the desired effect it may be necessary to take legal action.
As soon as the alleged breach has occurred
The Employer (you) to the Employee
Great Britain & NI (United Kingdom), Worldwide
How can I ensure that this letteris executed effectively?
| Step | Description | Responsibility | Timing (Days from allegation) |
| 1 | Review Employment Contracts: Review employment contracts to identify relevant restrictive covenants. | HR / Legal Team | N/A |
| 2 | Gather Evidence: Collect evidence of the former employee's potential breach of restrictive covenants. | HR / Management Team | Day 1 |
| 3 | Legal Consultation: Seek legal advice to ensure that the potential breach is enforceable and justified. | HR / Legal Team | Day 3 |
| 4 | Prepare Enforcement Letter: Create a comprehensive Restrictive Covenant Enforcement Letter, stating the alleged breach, requested actions, and potential consequences. | HR / Legal Team | Day 5 |
| 5 | Issue the Enforcement Letter: After finalising the letter and obtaining approval, issue the Restrictive Covenant Enforcement Letter to the employee, officially notifying them of the potential breach and the company's intent to enforce the restrictive covenants. | HR / Management Team | Day 7 (Or as deemed appropriate |
What legislation and best practice guidelines have been taken into account in the development of this template?
To enforce a restrictive covenant, the employer must typically demonstrate that the covenant is reasonable in scope and duration, and is necessary to protect legitimate business interests such as confidential information, trade secrets, or customer relationships.
In general, to enforce a restrictive covenant, the employer must demonstrate that the covenant is reasonable in light of the employee's job duties and the legitimate business interests at stake, and that the employer has taken reasonable steps to protect those interests.
- Employment Rights Act 1996: Provides provisions for protecting confidential information, trade secrets, and intellectual property through restrictive covenants.
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Equality Act 2010: Ensures that any restrictive covenants are not discriminatory and do not disproportionately impact protected groups.
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Data Protection Act 2018: Ensures that any employee data used in the enforcement process is handled securely and in compliance with data protection regulations.
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Common Law: The template should adhere to common law principles of reasonableness, fairness, and protecting legitimate business interests when enforcing restrictive covenants.
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Employment Contracts: The letter template should align with the terms of the employment contract and any restrictive covenants mentioned therein.
Other territories
Consult your jurisdiction's employment legislation or labor laws to ensure compliance with the template. Review the language for local precision.
