Protecting Confidential Information and Business Interests: The Role Of Restrictive Covenants

During the employment relationship, many employees, and particularly those occupying management and executive team positions, will have access to business critical information. This could include arrangements with customers and suppliers, financial information such as sales and profit figures, projections, business plans or salary and benefits information for key employees.

During the employment relationship, certain implied duties owed by employer to employee, such as the duty of fidelity and confidentiality, will act to protect the business in the event of an employee using confidential information for their own interests. Some employees will also owe fiduciary duties to the business.