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Restrictive Covenants In the situation described in this problem, a restrictive covenant would be the best way to protect the company's interests. Although the implied terms of employee confidentiality regarding company information would be valid in this case, they wouldn't stop an employee working with rivals. All doubt should be removed by the inclusion of a clause in which the employee undertakes not to carry on a particular trade or profession for a period after the termination of the contract. It would permit the company to seek a interim interdict in court against Dr MGleam and Ms Wilkes preventing them from breaching the covenant. Restrictive covenants are common in many contracts (partnership, share holders, buyer-seller) including employment contracts. Prima facie, such rules are illegal and unenforceable unless the covenantee (the side who gains from the restriction) can invoke the restraint of trade doctrine which was introduced into law as a...

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