Financial & Legal News

Restrictive Covenants Employment Law Case

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At Pearson Solicitors and Financial Advisers, our Employment Law Solicitors have a wealth of experience representing both Employers and Employees, which sets them apart from most employment law firms.

Commenting on a recent High Court ruling between Law By Design Ltd v Ali Pearson's Head of Employment Law Susan Mayall takes a look at the case and offers some advice to Employers and Employees.

Protect your business by enforcing Restrictive Covenants

In the High Court case between Law By Design Ltd v Ali, the non-competition restrictive covenant in the service agreement could be enforced preventing an employee from joining a competitor. However, the covenant in the shareholder agreement was ruled unenforceable as it was deemed “wider than was reasonably necessary” for the protection of the business.

“I am frequently asked by employer clients whether post termination restrictive covenants (PTRCs) in employment contracts are worthwhile? Sometimes employers say to us that PTRCs aren’t worth the paper they are written on. However, this is not the case and, we would politely disagree” Says Susan Mayall.

A correctly drafted PTRC coupled with a confidentiality clause can be enforceable and can often make employees stop and think before setting up in competition; going to work in direct competition; soliciting customers or ex co-workers and/or suppliers – depending upon the wording of the restrictive covenants.

Seeking specialist advice from the very outset can ensure that a watertight employment contract can protect you and your business from potential losses in every sense of the word.

How can we help protect your business?

We always advise Employers to review their employment contracts to make sure the business is protected and we have a number of employment clients approaching our employment law team for specialist legal advice because we also represent employees.

For advice on all aspects of Employment Law and protecting your business contact our experienced team on 0161 785 3500 or email employment@pearsonlegal.co.uk

Employees beware - Restrictive Covenants can be enforced

If you are thinking about setting up a business in competition with your current employer; moving to a competitor or making a team move, please take a pause to review your employment contract and take legal advice before you make the move.

Restrictive covenants are there to protect an employer from any potential losses and these can, providing they are ‘reasonable’ and drafted correctly, be enforced so it is crucial you make sure you get legal advice.

When considering a future with your employer you need to be sure that your contract of employment does not have restrictive covenants. If your contract does or you have been issued with a new contract we would recommend contacting an Employee Law Solicitor to review it and see if the restrictive covenants can be reasonably enforced by your employer.

For legal advice on employment contracts and restrictive covenants contact our Employee Law specialist on 0161 785 3500 or email employment@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

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