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Post-employment Restrictive Covenant by legalifyNg: 5:10pm On Apr 01, 2017
(Five Minutes Read)


Lot of effort is put into gaining employment, but an equivalent effort should be put into understanding your Contract Of Employment before signing it.


The best way to solve a problem is to solve them before they become a problem. Post employment restrictive covenants, help you to do just this. Once drafted, they define what the employee may do and not do after he leaves your employment. Including these post employment restrictive covenants in your employment contract may save you a lot of headaches in the near future
If you are drafting such restrictive covenant, you may want to include

non-compete agreements: restricting former employees from seeking employment in the same role or trade;

non-solicitation agreements: This restricts former employees from attempting to take any of your company’s clients to a new company.

]no-hire agreements: Restricting former employees from offering employment in another venture to any of the company’s current employees.

It must be noted, that there are certain restrictions to this restrictive covenants (Lol!). However, restrictive covenants must also be limited and cannot be unnecessarily broad in scope and application, in order to be enforceable.
To start with , the extent of a post-employment restrictive covenants must be reasonable and necessary. It must be shown to protect a legitimate business interests of the employer.
Factors considered by courts in determining whether covenants actually serve to protect solely the business interests of the employer include:
(1) Geographic scope of application: A restrictive covenant must be limited in geographical scope; it geographical cache must not be unnecessarily wide.
Scenerio.
Mr A employees Mr. B. The employer includes it in a restrictive covenant signed by Mr. B, that Mr. B must not take up any employment or start any business in this particular industry or niche in the whole of Nigeria. Meanwhile, Mr. A only has 3 branches, all located in Lagos. This may be held to be to...

Read the rest: Visit www.legalify.ng/blog


Note:
Restrictive Covenants are sometimes tricky and might need to be analysed to understand your liabilities. At Legalify, we analyse your contracts, explaining it in simple English; your rights, obligations and liabilities contained in the contract. Visit www.legalify.ng


Read More: www.legalify.ng/blog

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