
Damian Babic
Counsel in Skadden's labor and employment practice in London, specializing in employment law and insurance M&A transactions.
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Jun 23, 2026
Noncompete and Nonsolicitation Clauses in Insurer and Insurance Brokerage M&A
6:50
6:57
7:04
12:36

Damian BabicGUEST
And the first thing to note is, unlike restrictive covenants in the vendor context, there are stricter rules that apply in the employment relationship.

Damian BabicGUEST
And that's really because there's an assumption that there's an inequality of bargaining power between an employer and an employee.

Damian BabicGUEST
So, courts are much more willing to take a stricter look at restrictions that are entered into in the employment context, and they're only going to enforce a restriction that goes no further than is reasonably necessary to protect an employer's legitimate business interests.
5 MINS LATER

Caroline JafferGUEST
So how can one mitigate against this? Well, it comes down really to having a clear employee communication strategy and effective retention measures in place from the outset.
