Settlement Agreement Restrictive Covenants

The starting point for the interpretation of all restrictions and agreements after termination is that they are null and void for reasons of public policy. But that`s just the starting point. Courts tend to view overly broad restrictive agreements as unenforceable. The definition of “too far” varies from case to case, but here are some indications: this case shows that the impact of the envisaged termination on restrictive agreements concluded outside the employment contract must be taken into account in the negotiation and design of a settlement agreement. All relevant documents, such as. B share plan rules or shareholder agreements must also be checked to ensure that the correct procedural requirements are met.