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

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

Fieldfisher—Will Sharp

Fieldfisher—Will Sharp

Fieldfisher boosts structured finance practice with appointment of Will Sharp

gunnercooke—Thomas Bjorn & Peter Rudd-Clarke

gunnercooke—Thomas Bjorn & Peter Rudd-Clarke

gunnercooke grows its life sciences team with new partner hires

Leonard Curtis Legal—Mark Maguire & Kane Jones

Leonard Curtis Legal—Mark Maguire & Kane Jones

Leonard Curtis Legal expands corporate team with twonew appointments

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
The Environment Agency can prosecute offences beyond environmental legislation where proceedings support its statutory functions, the Divisional Court has confirmed
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
back-to-top-scroll