Non-competition clause fair
by Philip
The fomer managing director of insurance broker Farr has lost his claim that a ban on competing with his former employer was unfair. The restrictive covenant that appeared in his contract has been upheld by the Court of Appeal. The Court found that the 12 month period was reasonable as an estimate of the period for which the confidential information would be valuable. Whilst at first glance a victory for the employer - employers should be aware that the case is very fact sensitive as the market which was restricted by the covenant was very limited. Not a carte blanche for other restrictive covenants being enforceable but thank you to Tanya (you know who you are!) for forwarding this one to me.
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