Image Guide to Restrictive Covenants IEL’s Guide to Restrictive Covenants provides a comprehensive overview of the legal framework governing restrictive covenants in employment across 25 countries worldwide, covering key issues from enforceability requirements and different types of restrictions to post-termination obligations, employer enforcement procedures, remedies and cross-border considerations.The information provided is intended for general informational purposes only and should not be construed as legal advice. The transmission and receipt of information contained on this platform does not form or constitute an attorney-client relationship. It is important to seek legal advice from a qualified attorney regarding any specific legal issue or problem. Choose countries and select questions Select specific jurisdictions to filter on Select specific jurisdictions to filter on Australia Belgium Brazil Canada China Denmark Finland France Germany Hong Kong India Indonesia Ireland Italy Luxembourg Mexico Netherlands Nigeria Poland Singapore Spain Switzerland UAE United Kingdom United States General 01. What are the principal types of restrictive covenants used by employers in your jurisdiction in relation to their employees? 02. What general rules apply in determining whether a restrictive covenant is enforceable against an employee? 03. How do these general rules differ from the general rules that apply in determining whether a restrictive covenant is enforceable in other contexts, for example a commercial agreement, a franchise agreement with an individual who is a franchisee, a shareholders agreement, or incentive arrangements? 04. Can restrictive covenants be enforceable against any level of employee or just certain types and, if so, which types? 05. Is an employer required to make a payment to an employee in order for any restrictive covenant in their employment terms to be potentially enforceable? If so, how much and/or how is that calculated? 06. Are there any planned changes in the law of restrictive covenants in your jurisdiction? If so, please provide details. Specific types of Restrictive Covenant: Direct restrictions 07. Non-compete: Will the courts enforce a restriction seeking to prevent an employee from working for a competitor after they leave the employer's employment? If so,(a) What conditions must be satisfied?(b) Specifically, must payment be made to the employee and, if so, at what level and for how long? 08. Garden leave: Do employers use "garden leave" provisions in their employment terms whereby an employee who has either given or received notice of termination of their employment is required to stay away from the workplace and is prevented from having any contact with clients/customers or staff while continuing to be paid? If so, (a) what conditions must be satisfied and/or are there any limits on the use of garden leave clauses? (b) will your courts require that the duration of any "garden leave" must be offset against the duration of any restrictive covenants that apply after termination of employment? 09. Confidential information: Will the courts enforce an employment term seeking to prevent an employee from using or disclosing their employer's confidential information after they leave its employment? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 10. Non-solicitation clients: Will the courts enforce an employment term seeking to restrict an ex- employee from approaching their former employer's clients or customers or potential clients or customers? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 11. Non-dealing clients: Will the courts enforce an employment term seeking to restrict an ex-employee from dealing with their former employer's clients or customers or potential clients or customers even if the client or customer approaches the ex-employee? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 12. Non-dealing suppliers: Will the courts enforce an employment term seeking to restrict the extent to which an ex-employee can deal with their former employer's suppliers? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 13. Non-solicitation employees: Will the courts enforce an employment term seeking to restrict an ex-employee from approaching any of their former employer's staff to persuade them to leave their employment and become a fellow employee of the ex-employee in their new employment? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 14. Non-employ: Will the courts enforce an employment term seeking to restrict an ex- employee from being involved in the process of engaging any of their former employer's staff on behalf of the ex-employee's new employer, even if the former employer's staff member approaches the ex-employee? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 15. Team move: Will the courts enforce what is sometimes called a "team move" covenant which seeks to prevent an employee from leaving the employer's employment and joining other former employees of the employer in working for a competitor of the employer? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 16. Non-disparagement: Will the courts enforce an employment term seeking to restrict an ex-employee from disparaging or making comments about their former employer which may damages its reputation? If so, what conditions must the employer satisfy and for what duration would the court enforce the restriction? 17. Are there any other types of post-termination restriction which are common? If so, what are they and what conditions must be satisfied? Specific types of Restrictive Covenant: Indirect restrictions 18. Golden handcuffs: Which types of provisions do employers in your jurisdiction use in their employment arrangements which potentially have the effect of restricting the activities of an employee after they leave their employment but which do not overtly seek to restrict those activities? Examples could be:(a) long term incentive plans in which awards may be forfeited if the employee engages in certain types of competitive activity(b) commission schemes in which accrued commission otherwise payable to the ex- employee could be forfeited in similar circumstances? 19. Will the courts enforce such provisions? If so:(a) What conditions must the employer satisfy?(b) Will the courts enforce all such provisions or only certain types and if so, which types? Enforcement 20 . If an employer wishes to enforce a restrictive covenant:(a) What process must it follow and in which court must it seek to enforce the covenant?(b) What remedies can an employer obtain?(c) If a court order preventing breaches/further breaches of the covenant can be obtained, how quickly can the employer obtain this order from the court?(d) Is it a potentially expensive process?(e) What conditions must the employer satisfy to enforce a covenant?(f) How common is it for employers seeking to enforce a restrictive covenant to come to an agreement with the ex-employee without issuing legal proceedings?(g) Are there situations when an otherwise enforceable restrictive covenant is not enforceable (for example if there has been a repudiatory breach of contract)? 21. Will a court rewrite a restrictive covenant if it considers that it is too wide in its effect or too long in its duration? If so, what are the conditions that must be satisfied? If not, would the court delete words in the restrictive covenant to make it enforceable? 22. If an employment contract is governed by the law of another jurisdiction, which law will the courts apply when determining if the covenant is enforceable? Search Clear filters Download your results as a PDF Save to PDF Contributing editors First Name Christine Young, Company Herbert Smith Freehills Kramer Contributors Shivchand Jhinku, Herbert Smith Freehills Kramer, AustraliaStefanie Tack, Strelia, BelgiumJennifer Huybrechts, Strelia, BelgiumNathan Dubois, Strelia, BelgiumAline Fidelis, Tauil & Chequer in association with Mayer Brown, BrazilErin R. Kuzz, Sherrard Kuzz, CanadaGiovanna Di Sauro, Sherrard Kuzz, CanadaJeffrey A. Stewart, Sherrard Kuzz, CanadaAicha Raeburn-Cherradi, Sherrard Kuzz, CanadaFatim Jumabhoy, Herbert Smith Freehills Kramer, ChinaGillian Miao, Herbert Smith Freehills Kramer Kewei, ChinaMichael Møller Nielsen, Lund Elmer Sandager, DenmarkLene Lindved Fruensgaard, Lund Elmer Sandager, DenmarkLiw Christensen, Lund Elmer Sandager, DenmarkHenna Wiklund, HPP, FinlandTiina Kämäräinen, HPP, FinlandEmma Röhsler, Herbert Smith Freehills Kramer, FranceMoritz Kunz, Herbert Smith Freehills Kramer, GermanyJulia Ickstadt, Herbert Smith Freehills Kramer, GermanyFatim Jumabhoy, Herbert Smith Freehills Kramer, Hong KongWei-Liang Chan, Herbert Smith Freehills Kramer, Hong KongManishi Pathak, Anhad Law, IndiaMarshall Situmorang, Nusantara Legal Partnership, IndonesiaAudria Putri, Nusantara Legal Partnership, IndonesiaIrfan Yusuf, Nusantara Legal Partnership, IndonesiaKaren Killalea, Maples Group, IrelandCiara Ni Longaigh, Maples Group, IrelandLorenzo Fusco, Herbert Smith Freehills Kramer, ItalyFlorence Apostolou, ELVINGER HOSS PRUSSEN, LuxembourgChristiana Goula, ELVINGER HOSS PRUSSEN, LuxembourgOctavio Cantón, Galicia, MexicoPaola Cravioto, Galicia, MexicoJimena Robles, Galicia, MexicoIrma Ross, Galicia, MexicoRob van Eldik, Palthe Oberman, NetherlandsOkechukwu Okoro, G Elias, NigeriaKanzullahi Hibatullahi, G Elias, NigeriaUtonwa Lauretta Onwumelu, G Elias, NigeriaAmara Ojiaka , G Elias, NigeriaKarolina Dębiec, Wołoszański & Partners, PolandMarta Solarska-Kaleńczuk, Wołoszański & Partners, PolandKinga Miller, Wołoszański & Partners, PolandFatim Jumabhoy, Herbert Smith Freehills Kramer, SingaporeWei-Liang Chan, Herbert Smith Freehills Kramer, SingaporeMaria Cristos, Herbert Smith Freehills Kramer, SpainMichèle Stutz, MME Legal, SwitzerlandMartina Aepli, MME Legal, SwitzerlandNatascha Figoutz, MME Legal, SwitzerlandBen Brown, Clyde & Co, UAEChristine Young, Herbert Smith Freehills Kramer, United KingdomRobert Holtzman, Herbert Smith Freehills Kramer, United States Contributors Christine Young, Herbert Smith Freehills Kramer, United Kingdom Shivchand Jhinku, Herbert Smith Freehills Kramer, Australia Fatim Jumabhoy, Herbert Smith Freehills Kramer, China Gillian Miao, Herbert Smith Freehills Kramer Kewei, China Emma Röhsler, Herbert Smith Freehills Kramer, France Moritz Kunz, Herbert Smith Freehills Kramer, Germany Julia Ickstadt, Herbert Smith Freehills Kramer, Germany Fatim Jumabhoy, Herbert Smith Freehills Kramer, Hong Kong Wei-Liang Chan, Herbert Smith Freehills Kramer, Hong Kong Lorenzo Fusco, Herbert Smith Freehills Kramer, Italy Fatim Jumabhoy, Herbert Smith Freehills Kramer, Singapore Wei-Liang Chan, Herbert Smith Freehills Kramer, Singapore Maria Cristos, Herbert Smith Freehills Kramer, Spain Robert Holtzman, Herbert Smith Freehills Kramer, United States Ben Brown, Clyde & Co, UAE Florence Apostolou, ELVINGER HOSS PRUSSEN, Luxembourg Christiana Goula, ELVINGER HOSS PRUSSEN, Luxembourg Henna Wiklund, HPP, Finland Tiina Kämäräinen, HPP, Finland Michèle Stutz, MME Legal, Switzerland Martina Aepli, MME Legal, Switzerland Natascha Figoutz, MME Legal, Switzerland Marshall Situmorang, Nusantara Legal Partnership, Indonesia Audria Putri, Nusantara Legal Partnership, Indonesia Irfan Yusuf, Nusantara Legal Partnership, Indonesia Stefanie Tack, Strelia, Belgium Jennifer Huybrechts, Strelia, Belgium Nathan Dubois, Strelia, Belgium Manishi Pathak, Anhad Law, India Octavio Cantón, Galicia, Mexico Paola Cravioto, Galicia, Mexico Jimena Robles, Galicia, Mexico Irma Ross, Galicia, Mexico Karen Killalea, Maples Group, Ireland Ciara Ni Longaigh, Maples Group, Ireland Rob van Eldik, Palthe Oberman, Netherlands Erin R. Kuzz, Sherrard Kuzz, Canada Giovanna Di Sauro, Sherrard Kuzz, Canada Jeffrey A. Stewart, Sherrard Kuzz, Canada Aicha Raeburn-Cherradi, Sherrard Kuzz, Canada Michael Møller Nielsen, Lund Elmer Sandager, Denmark Lene Lindved Fruensgaard, Lund Elmer Sandager, Denmark Liw Christensen, Lund Elmer Sandager, Denmark Karolina Dębiec, Wołoszański & Partners, Poland Marta Solarska-Kaleńczuk, Wołoszański & Partners, Poland Kinga Miller, Wołoszański & Partners, Poland Aline Fidelis, Tauil & Chequer in association with Mayer Brown, Brazil Okechukwu Okoro, G Elias, Nigeria Kanzullahi Hibatullahi, G Elias, Nigeria Utonwa Lauretta Onwumelu, G Elias, Nigeria Amara Ojiaka , G Elias, Nigeria