preview

Restrictive Covenant Essay

Satisfactory Essays

• Restrictive Covenants: It refers to the ability to impose restrictions on an employee by an employer regarding what he cannot do during and after his course of employment. Three types of restrictive covenants are: 1. Non-disclosure clauses prevent former employees from using and disclosing confidential information relating to the employer. 2. Non-solicitation clauses prevent former employees from attracting customers, clients and sometimes employees of employer. 3. Non-competition clause prevent former employees from competing with employer after his employment for a specific period. These clauses are vital to add into contract in order to improve its value. • Choice of Law: Employment laws vary from state to state. Some states have laws that are for the most part seen as more positive or useful to employers than employees or the other way around. …show more content…

This provision is important to include because it clearly states that whether the employer has recognized the employee’s service with the previous employer or not. It is necessary for severance purposes. The rationale behind this is that if an employee has been lured from his/her current position then he/she should be given same benefits in his new place or may be more than that. Therefore, if an employee was arguably induced to leave secure employment, the contract should expressly state how that employment will affect benefits and termination notice. • Health and medical care: As this contact is for the position of a manager, therefore, this provision regarding health and medical care is also important. It specifies the health related benefits that an employer will provide such as specific medical expenses insurance can be taken out by employer for employee so that in case of emergencies, immediate treatment can be

Get Access