A restrictive covenant is a legal agreement which restricts an employee to work for another employer for a certain period of time. 

It is a clause which is inserted into a business agreement or individual contract to  prevent an employee from working for another employer in the same industry or geographic region for a given period after they leave an organization. 

Having this clause included in an employment contract is important because:

• Protects the employer’s relationship with clients or customers
• Bring stability to the organization’s workforce
• Protect the confidential information

Nevertheless, a restrictive covenant protects the employer against their competitors; organization’s must ensure that this clause is included in employment contracts.