Restrictive covenants
In Forshaw and others v Archcraft Ltd, the EAT holds that the employment tribunal erred in holding that a dismissal for refusing to sign a contract of employment that contained an unreasonable restraint of trade clause was for "some other substantial reason".
This week's case round-up from Eversheds, covering unfair dismissal.
A provision of a contract of employment preventing the employee from working for any other business during the term of the contract could be enforced by an injunction limited to restraining the employee, during the remainder of a period of garden leave, from being employed by or advising a competitor of the employer, holds the Court of Appeal in Symbian Ltd v Christensen.
In Wincanton Ltd v Cranny and another, the Court of Appeal holds that a non-solicitation covenant was, owing to its internal limitations, not too wide as to be unenforceable.
In the absence of an express contractual term entitling a bookmaker to send the senior dealer in its spread-betting business on garden leave, it was under an obligation to allow him to perform the duties of the post to which it had appointed him in accordance with his contract both during his notice period and before he gave in his notice, holds the Court of Appeal in William Hill Organisation Ltd v Tucker.
There is no legal basis on which a court can, in enforcing a restrictive covenant by injunction, allow some kind of set-off against the period during which the employee has been on garden leave, holds the Court of Appeal in Armstrong and others v Credit Suisse Asset Management Ltd.
In Alliance Paper Group Plc v Prestwich [1996] IRLR 25 HC, the High Court held that the employer was entitled to enforce a covenant restraining the employee from poaching staff who had been employed by the employer "in a senior capacity".
A restrictive covenant preventing former employees of an employment agency in the City of London from dealing with and soliciting custom from all 6,000 clients of their former employer was too wide.
In Lansing Linde Ltd v Kerr the Court of Appeal holds that the High Court was entitled to refuse an employer's application for an interim injunction restraining a former employee from working for a competitor in breach of a restrictive covenant.
Where an employee is wrongfully dismissed, any outstanding contractual obligations of the injured employee are extinguished upon the ending of the employment contract, holds the High Court in Briggs v Oates.
Employment law cases: HR and legal information and guidance relating to restrictive covenants.