HR Glossary

Restrictive covenant

Restrictive covenant, also known as a negative covenant, refers to a clause in the employment contract which restricts key employees from engaging in certain work activities for business competitors/starting their own similar business for a certain period of time after leaving current employer.

what-is-restrictive-covenant

Restrictive covenant definition

Restrictive covenant, also known as a negative covenant, refers to a clause in the employment contract which restricts key employees from engaging in certain work activities for business competitors/starting their own similar business for a certain period of time after leaving current employer.

Types of restrictive covenants

• On-competition covenants: restrictions on the former employee working in similar employment for a competitor

• Non-solicitation covenants: prevent poaching of clients/customers/suppliers of the former employer

• Non-dealing covenants: prevent a former employee from dealing with former clients/customers/suppliers, regardless of which party approached the other

• Non-poaching covenants: prevent an employee poaching former colleagues

See TalentLyft in action

Applicant Tracking, Recruitment Marketing, Sourcing and Talent CRM software are powerful alone, but unstoppable when used together!

Related content

  • Applicants

    Applicants are an individuals who apply for a post of employment at a certain employers' facilities by going through the hiring process, usually defined by the...

  • Base Wage Rate

    Base wage rate is the minimum fixed amount of money paid for a job before anything extra is added, like bonuses, allowances, or any such compensation. Definition...

  • Carrier

    Carrier refers to a vendor in the employee benefits space. It is a term more commonly used in reference to health care.Carrier definition Carrier refers to...

  • Contingent Staff

    Contingent staff refers to temporary workers in casual employment who supplement a company's workforce.Contingent staff definitionContingent staff refers to temporary workers in casual employment who supplement...

  • Discrimination

    Discrimination is the process of favoring one group of people over other groups which leads to the unfair treatment of others. Discrimination definitionDiscrimination is the process...

Explore more topics

  • Talent Acquisition

    Optimize your talent acquisition strategies to attract, engage, and hire the best candidates. Learn how to build a strong talent pipeline, enhance your employer branding, and implement effective recruitment methods. Stay competitive by securing top talent that drives long-term business success.

    Learn more

  • Recruitment Process

    You are here to improve and optimize your recruitment process and that is exactly what we'll do for you. Sit back and dive into the best strategies, practices and tips to attract and hire candidates in the most streamlined and efficient way.

    Learn more

  • Recruitment Trends

    Stay up-to-date with the latest trends shaping the recruitment industry. From AI and automation to remote hiring and employer branding, discover how modern recruitment strategies are evolving. Learn to adapt to these trends and enhance your talent acquisition process to attract top candidates in a competitive market.

    Learn more

  • Successful Recruiter

    Discover the key traits, strategies, and tools that make a recruiter successful. Learn how to build strong relationships, source top talent, and navigate the hiring process efficiently. Equip yourself with the skills and techniques to consistently find and secure the best candidates for your organization.

    Learn more

  • Employee Referrals

    Boost your hiring success with employee referrals. Leverage the power of your existing workforce to recommend top talent, reducing time-to-hire and improving candidate quality. Learn how to create an effective employee referral program that incentivizes employees, enhances engagement, and strengthens your recruitment pipeline.

    Learn more

  • HR Software

    Let HR technology make your work life easier! Streamline your HR processes, from payroll and benefits to talent management and recruitment, with powerful HR software. Save time, reduce manual tasks, and focus on strategic initiatives by working smarter, not harder.

    Learn more

Simple and affordable recruitment software

Schedule a Demo Start Free Trial