Restrictive covenant

restrictive covenant: in contract law, a contractual promise which imposes or purports to impose a restraint of trade on the party giving the promise; often found in contracts of employment, to prevent employees from soliciting customers, poaching other employees, or competing with the employer for a certain time period following termination of employment; an employment law restrictive covenant will be unenforceable unless the employer can show that the restrictive covenant goes no further than reasonably necessary in order to protect the employer’s legitimate business interests.