header-logo header-logo

27 May 2022 / Caroline Field
Issue: 7980 / Categories: Features , Employment
printer mail-detail

Interim injunction in employee competition cases

82718
Caroline Field explains why delaying agreement of undertakings doesn’t pay…& may cost
  • Covers employee competition cases, specifically interim injunctions granted pending further exploration at trial.
  • Offers practical advice and covers recent caselaw.

Injunctions to stop employees commencing employment with a competitor in breach of a non-compete are routinely granted by the courts. Often, this is in recognition of the difficulties of policing compliance with other covenants and breach of confidentiality claims where confidentiality is the legitimate interest the employer is seeking to protect. An interim injunction ‘holds the ring’ until matters can be fully explored at trial. Enforceability of the covenant (including examination of meaning, whether it goes no further than reasonably necessary to protect a legitimate interest and/or whether a repudiatory breach of contract has caused the covenant to fall away) will typically be considered at trial. Claims follow a familiar pattern.

Pursuant to the rules set down in American Cynamid Co v Ethicon Ltd [1975] 1 ALL ER 504, [1975] AC 396, the court’s threshold for granting an injunction at an interim stage is likely 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

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
back-to-top-scroll