Employment contracts establish expectations for both parties. Companies commit to providing wages and benefits. Workers agree to meet certain expectations regarding their attendance and job performance.
Frequently, employers enforce employment contracts by terminating working arrangements. If an employee does not fulfill their obligations or meet company standards, eliminating their position is a natural consequence of that failure. In some cases, employers have to enforce specific provisions in employment contracts through civil litigation.
If a former employee’s contract included restrictive covenants, the discovery that they have breached the agreement could be disheartening. Organizations may need to take legal action in response to former workers ignoring restrictive covenants.
What are the most common restrictive covenants?
Restrictive covenants prevent people from engaging in specific activities. Many employers require that workers sign noncompete agreements when moving into key positions within the company.
Other times, workers must sign nondisclosure agreements if they have access to details about how the company operates or trade secrets. Employers may even use nonsolicitation agreements to prevent workers from poaching clients in the future or draining the company of talent if they start their own companies.
Typically, restrictive covenants remain in effect for several years after the end of the van appointment relationship. The discovery of a breach of that agreement may lead to civil litigation.
How can the courts help?
Provided that the employer seeking to enforce a restrictive covenant has evidence of a breach, the civil courts offer several solutions. Frequently, employers seek to enforce penalty clauses. Restrictive covenants often impose a specific financial penalty for violations of the agreement.
Other times, employers may request injunctions prohibiting additional violations of the agreement in the future and corrections of prior breaches. They may combine that with a request for damages. If there have been verifiable financial consequences related to the worker’s misconduct, the company may be able to hold them directly responsible.
Reviewing the terms of an employment contract with a skilled legal team can be the first step toward holding former workers accountable for contract breaches. Businesses may need to go to court to enforce restrictive covenants when employees engage in economic activities or make disclosures that could harm their former employers.