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Restrictive Covenant

A restrictive covenant in an employment contract is a clause that limits what an employee can do after leaving employment — for example by prohibiting them from working for a competitor, poaching colleagues, or soliciting clients within a specified period and geographical area. Restrictive covenants are only enforceable if they go no further than is reasonably necessary to protect a legitimate business interest. Courts may strike down or narrow unreasonable clauses.

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