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

  • 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.

  • Recruitment AI

    Leverage the power of Recruitment AI to enhance your hiring process. Discover how artificial intelligence can automate candidate sourcing, improve talent matching, reduce bias, and streamline decision-making. Stay ahead with AI-driven recruitment strategies that help you attract top talent efficiently and effectively.

  • Employee Onboarding

    In the journey to build a cohesive and productive workforce, effective employee onboarding is the foundation of success. Employee onboarding isn't just a checklist - it's an essential process that sets the tone for an employee's entire tenure at your organization. Learn about the strategies, best practices, and technologies you can implement at your organization to create seamless and impactful onboarding experiences that st your workforce for future success.

  • Mastering the Interview

    Conducting an effective interview means getting the best and most out of a candidate in a limited time frame. To do that you need to ask the right questions. From general questions to more strategic ones, here you'll find all the questions you need to get what you need to help you choose the best candidate.

  • 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.

  • SMBs HR

    Unlock effective HR strategies tailored for small and medium-sized businesses (SMBs). Learn how to manage recruitment, employee engagement, compliance, and talent development on a budget. Discover tools and best practices to streamline your HR processes and build a strong, thriving workforce in your growing business.

Simple and affordable recruitment software