header-logo header-logo

Restrictive covenants

Bruce Gardiner & Ming Yee Shiu present a two-part practical guide to enforcing or resisting covenants

* * * * * *

When a client is seeking advice about restrictive covenants, time is often in short supply. An ex-employee may be poaching customers and his former employer fears a catastrophic effect on his business. Or an ex-employee may have started a new business and fears his former employer may be threatening to obtain an injunction that could close his business down. In both these situations, the client needs help, and needs help fast. This two-part article sets out a 10-point checklist to use when there's no time for detailed legal research.

Is the covenant a contractual term?

This fundamental question is often overlooked. If the restrictive covenant is not a term of the employment contract, then it will obviously not be enforced by an injunction. There are several situations where the ex-employer's understanding of the contractual position may not be the true position. These can be broadly divided into two situations.

      
      ●     First, where the ex-employer has never attempted to

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Anthony Collins—20 promotions

Anthony Collins—20 promotions

20 promotions mark major people investment at national law firm, Anthony Collins

Sidley—Elaine Whiteford

Sidley—Elaine Whiteford

Sidley adds competition litigator Elaine Whiteford in London

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys—Claudina D’Costa

Charles Russell Speechlys welcomes Claudina D’Costa as Director of Client Development Marketing

NEWS
The 25th Pro Bono Week begins today until 6 November, with events hosted by law firms, chambers, law schools and charities across the UK
Aggressive sales tactics can add up to fraudulent trading even without proof of a particular deception or financial loss
Judges risk weakening their own independence by staying silent over government reforms, a leading public lawyer argues
A discount on damages does not automatically mean an equivalent haircut for legal costs in military deafness claims
Police powers targeting concealed identities at protests come with procedural conditions that could determine whether prosecutions succeed
back-to-top-scroll