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17 April 2014 / Tom Walker
Issue: 7603 / Categories: Opinion , Terms&conditions , Employment
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Time up for template covenants?

Tom Walker & Richard Marshall explain why some employees may have less waiting time between jobs in future

Over the last year, a series of cases has given useful guidance on the permissible length of covenants seeking to restrict an ex-employee’s client dealings.

Post-termination restraints are void unless the employer can demonstrate a legitimate business interest and show that the wording of the covenant goes no further than what is reasonable. It is accepted that client goodwill is a protectable interest and that relatively short periods of restraint, some six to 12 months, are permissible. The recent case of East England Schools CIC v Palmer and Sugarman [2013] EWHC 4138 (QB) challenged this approach in the context of a school recruitment agency.

An employee with six-month client covenants, Palmer, began to contact her former client schools very soon after joining her new employer, Sugarman. Her former employer, East England Schools (EES), sought an injunction and the matter ultimately came to a full trial to assess the reasonableness of the client covenants. The defendants questioned whether in today’s internet age it can be

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NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
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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
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