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

Explore more topics

  • Recruitment by Industry

    Tailor your recruitment strategies to fit specific industries. Learn the unique challenges and best practices for hiring in sectors like healthcare, tech, retail, finance, and more. Discover industry-specific approaches to sourcing talent, crafting job descriptions, and optimizing your recruitment efforts for success.

    Learn more

  • Recruitment Content

    Elevate your hiring efforts with compelling recruitment content. Learn how to create engaging job descriptions, employer branding materials, and targeted social media posts that attract top talent. Effective content helps showcase your company culture, values, and opportunities, making you stand out in the competitive recruitment landscape.

    Learn more

  • Resume Screening

    Streamline your hiring process with efficient resume screening techniques. Learn how to quickly identify top candidates by filtering through resumes for relevant skills, experience, and qualifications. Utilize tools and strategies to save time, reduce bias, and ensure you're shortlisting the best talent for the job.

    Learn more

  • Recruitment Agencies

    Discover how recruitment agencies can efficiently source, screen, and place top candidates tailored to your needs. Explore the advantages of partnering with specialized agencies that understand your industry and deliver quality talent faster, saving you time and resources in the hiring process. Discover the pros and cons of using a recruitment agency.

    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

  • People Analytics

    People Analytics – Unlock the power of data to make informed HR decisions. Learn how people analytics can help you track employee performance, improve retention, and enhance recruitment strategies. Use data-driven insights to optimize your workforce management and build a stronger, more efficient organization.

    Learn more

Simple and affordable recruitment software

Schedule a Demo Start Free Trial