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Restrictive covenants

New and updated

  • Type:
    Employment law guide

    Common contract terms

    There are no current updates.

  • Date:
    8 July 2022
    Type:
    Commentary and insights

    Should employers pay for restrictive covenants?

    In some countries, clauses that restrict employees from working for a competitor or setting up their own business after they leave are not enforceable unless the ex-employee is paid. But would this work in the UK? Justin T Tarka, employment lawyer at Ogletree Deakins, looks at the pros and cons.

  • Date:
    1 July 2022
    Type:
    Commentary and insights

    Employment law changes 2022: Mid-year progress report for HR

    As we reach the midpoint of 2022, HR professionals would be forgiven for losing track of all the live employment law proposals and what they mean for their organisation. To assist HR with planning for the rest of the year and beyond, we round up the major employment law changes in the pipeline as of mid-2022.

  • Type:
    Contract clauses

    Post-termination restrictive covenant contract clauses

    Model post-termination restrictive covenant clauses to prevent employees from engaging in competitive activities such as working for a competitor, or poaching or soliciting customers and/or employees.

  • Type:
    Employment law cases

    Employee "blackmailed" into signing restrictive covenants was unfairly dismissed

    In Ward v Fiducia Comprehensive Financial Planning Ltd, an employment tribunal upheld a claim for constructive unfair dismissal, finding that the employer had put inappropriate and excessive pressure on the employee to agree to an extended restrictive covenant following his resignation.

  • Type:
    FAQs

    Will the courts always enforce restrictive covenants?

  • Type:
    Employment law cases

    Supreme Court rules on correct test for severance in restrictive covenants

    In Tillman v Egon Zehnder Ltd, the Supreme Court allowed the appeal and held that a six-month non-compete clause was enforceable because the unenforceable part of the clause was capable of being severed.

  • Type:
    Employment law cases

    Restrictive covenants: Non-compete clause too wide to be enforceable

    In Tillman v Egon Zehnder, the Court of Appeal held that a six-month non-compete clause that prevented the employee from being "concerned or interested in any business carried on in competition" after termination of employment was unenforceable as it would bar her from being a shareholder in a competing business.

  • Type:
    Employment law cases

    Breach of contract: nominal damages for misuse of confidential information

    The High Court has held that two ex-employees breached their contracts of employment by misusing confidential information belonging to their former employer's business. However, the High Court found that the employer had not suffered any financial loss and that it was entitled to only nominal damages of £1 from each employee.

  • Type:
    Employment law cases

    Libel: Email stating employee dismissed for gross misconduct not libellous

    In Theedom v Nourish Trading Ltd (t/a CSP Recruitment) and another [2016] IRLR 866 HC, the High Court dismissed an employee's libel claim in respect of emails sent by his employer about his misconduct.

About this topic

HR and legal information and guidance relating to restrictive covenants.