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Restrictive covenants

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  • Date:
    18 August 1987
    Type:
    Employment law cases

    Contracts of employment: Confidentiality clause valid

    In Norbrook Laboratories Ltd v Smyth the High Court in Northern Ireland holds that a restrictive covenant which was signed by an employee in the course of employment was binding in law. The court further holds that the confidentiality clause should not be regarded as void for being In restraint of trade even though the restriction was world-wide and was to last for one year alter the employment ended.

  • Date:
    4 February 1986
    Type:
    Employment law cases

    Contracts of employment: When employee competition is lawful

    In Faccenda Chicken Ltd v Fowler and others the Court of Appeal upholds the High Court's ruling that, in the absence of a restrictive covenant, a company's former employees were free to make use of their knowledge of that company's customers and pricing structure while working for a competitor, thereby enabling them to solicit trade from their former employer's customers.

  • Date:
    31 December 1966
    Type:
    Employment law cases

    Bull v Pitney Bowes Ltd

    In Bull v Pitney Bowes Ltd [1966] 2 All ER 384 HC, the High Court held that clauses in restraint of trade are void unless the employer can show that they are no more than is required to protect its interests, but even then, if the employee can show that the clause is contrary to the public interest, it remains void and unenforceable.

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HR and legal information and guidance relating to restrictive covenants.