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Employment contract

Restrictive Covenants – High Court decision provides further guidance on enforceability

Employers seeking to protect their business in the event of a key employee leaving who may be able to take customers with them will normally include restrictive covenants in employment contracts in order to reduce the scope for this occurring. Such restrictions will be considered void in law as being “in restraint of trade” unless they protect a legitimate interest and are deemed reasonable in the circumstances. The protection of a legitimate interest usually applies where employees either have  access

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5th September 2016
Team meeting

Government investigates contractual non-compete clauses

As part of the Government’s pledge to make Britain the best place in Europe to innovate and start up a new business, Business Secretary Sajid Javid has announced plans by the Department of Business Innovation and Skills to look into restrictive covenants following suggestions (from whom exactly, we don’t know at this stage!) that they could be hindering start-up businesses from hiring the best and brightest talent. The theory put forward is that contractual non-compete clauses (which can prevent individuals

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6th May 2016
employment law

Reasonable restrictive covenants deemed enforceable

In Croesus Financial Services v Bradshaw Restrictive, the High Court held that covenants prohibiting an ex-employee from soliciting or dealing with his former employer’s customers for a year post-termination were not an unreasonable restraint of trade. On the facts, the Court was satisfied that the 12-month non-solicitation and non-dealing covenants did not extend any further than was reasonably necessary in order to protect the employer’s business. The Defendants argued that the restrictions were excessive and therefore unenforceable because they applied

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3rd December 2013

Case revisits the question of when to suspend

A recent Court of Appeal case revisits the responsibility placed on employers to ensure that suspension is appropriate in the circumstances, and again warns against knee jerk reactions in this regard. In cases of alleged gross misconduct, employers generally suspend as a matter of course. However, in Crawford v Suffolk Mental Health Partnership NHS Trust, the Trust’s decision to suspend was criticised as being heavy handed in the circumstances, notwithstanding the fact that the allegations – which related to the

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28th February 2012

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