OUR PEOPLE

What is a settlement agreement?

In brief, it is an agreement commonly used to record an employee’s departure. Often, an employer may provide a monetary sum in return for an employee waiving any actual or potential employment claims against an employer. I help employers draft appropriate agreements to use with their employees, and also advise employees who are being asked to enter into settlement agreements. This gives me a real commercial insight into both sides of the process.

Are restrictive covenants enforceable?

A restrictive covenant may be enforceable, provided it is designed to protect an employer’s legitimate business interest (for example, a client database or confidential information). Restrictive covenants which are a restraint on trade or unreasonable (for example, covers a wide geographical location) are unlikely to be enforceable. I support and work with employers to understand exactly what they want to protect and why, before drafting the clauses for maximum enforceability. I also advise on protecting your business through other routes – such as use of garden leave, tracking of confidential information and incentive packages to reduce employee turnover. Enforcing a restrictive covenant should always be the last resort and many of the earlier interventions are often more cost effective and offer better protection.