Protecting the most valuable asset

Covenants can protect employers from departing staff
By Todd Humber
|Canadian HR Reporter|Last Updated: 11/22/2005

It’s not a secret anymore, nor is it any longer just a line corporations spit out to sound trendy — employees are a company’s most valuable asset.

As more organizations realize this, many are taking action to minimize the damage caused by a departing employee. One way to do this is through the use of a restrictive covenant in an employment contract.

In the context of employment law, restrictive covenants come in the form of non-competition and non-solicitation clauses. The former prevents a departing employee from competing with the employer and the latter prevents the employee from stealing customers.