Restrictive Covenants

by Sarah

The Court of Appeal has ruled on another case involving restrictive covenants.  Again, the case is fact sensitive but the Court held that a 12 month non-dealing restriction was reasonable having regard to the nature of the business and the seniority of the employee involved.  You can read the full Judgment here

Restrictive covenants are always a tricky subject to deal with, as it is a question of interpretation and different in every case.  Employers need to consider whether the restrictive covenants are protecting a legitimate business interest and ensure that they are drafted wide enough to protect them and not too wide to render them unenforceable.  This is particularly the case with non-competition clauses as the Courts are less keen to restrict an employee’s right to work in a given market.  As always there are exceptions but if in doubt when drafting your contracts seek specialist advice. 

This entry was posted on Friday, June 29th, 2007 at 8:30 am and is filed under Breach of Contract. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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