Post Termination Restrictions and Injunctions
'Every business has information that it considers both integral and invaluable to its success. Restricting the use of this information by employees after their term of employment may be vital to the protection of your market position. An ex-employee who has been privy to your client details and trade secrets may be an attractive asset to a competitor seeking to encroach upon your market.
An employer may seek to protect the use of this information through the inclusion of a restrictive covenant in the contracts of employment of senior or key staff at the commencement of the employment relationship.
A restrictive covenant is usually a clause in a contract which prohibits an employee from competing with his ex-employer after the employee has parted company with the business, or prevents the ex-employee from soliciting customers of the business by using knowledge of those customers gained during his prior employment.