Restrictive covenants in settlement agreements (UK)
What restrictive covenants do, how they interact with your contract, and why scope and duration matter in negotiations.
Get Your Instant Settlement Estimate Before You Read On.
What covenants do
Restrictive covenants can limit what you do after employment—such as working for competitors, soliciting clients, or recruiting colleagues. Your employment contract may already contain them; a settlement can reaffirm, vary, or add consideration for existing terms.
Enforceability
Courts may scrutinise scope, duration, and geography. If covenants look too wide, negotiation might narrow them in exchange for other concessions. Do not assume all covenants are unenforceable without advice.
Balancing the package
Sometimes employers pay a modest sum specifically tied to reaffirming restrictions. Understand how this interacts with your plans after exit and with references.
Ready to find out what your settlement should be?
Use our free calculator for an instant personalised estimate. When you instruct a solicitor, your employer often pays their fees in most cases.