Definition and Types of Restrictive Covenants
The extent of the restrictive covenant (i.e. in scope, length of time and geographic reach) as well as the consequences for each party in the event of a breach of said covenant, and any other pertinent details should be clearly defined in the agreement between the employer and employee.
Non-competition agreements and non-solicitation of customers clauses are recognised and may be enforceable under the law. However, non-solicitation of employee clauses are invalid based on case law as they violate the right to free choice of employment; no person may be prohibited from exercising his/her profession.
Enforcement of Restrictive Covenants – Process and Remedies
If an employer suffers damage due to the employee’s breach of the non-competition provisions of the employment contract or a post-employment non-competition agreement, the employer may claim compensation.
Use and Limitations of Garden Leave
The employer may exempt the employee from the obligation to perform work until the lapse of the notice period, upon termination of the employment contract. During the period of exemption, the employee retains the right to remuneration.