header-logo header-logo

Restrictive covenants

Bruce Gardiner & Ming Yee Shiu present a two-part practical guide to enforcing or resisting covenants

* * * * * *

When a client is seeking advice about restrictive covenants, time is often in short supply. An ex-employee may be poaching customers and his former employer fears a catastrophic effect on his business. Or an ex-employee may have started a new business and fears his former employer may be threatening to obtain an injunction that could close his business down. In both these situations, the client needs help, and needs help fast. This two-part article sets out a 10-point checklist to use when there's no time for detailed legal research.

Is the covenant a contractual term?

This fundamental question is often overlooked. If the restrictive covenant is not a term of the employment contract, then it will obviously not be enforced by an injunction. There are several situations where the ex-employer's understanding of the contractual position may not be the true position. These can be broadly divided into two situations.

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

Harneys—Maggie Kwok & George Weston

Harneys—Maggie Kwok & George Weston

Harneys senior leadership appointments

Freeths—Keith Browne & Jim Jordan

Freeths—Keith Browne & Jim Jordan

Freeths strengthens London Construction and Engineering practice with two strategic senior hires

Anthony Collins—Laura Moss

Anthony Collins—Laura Moss

Anthony Collins announces strategic hire to deepen skills base in the social business sector

NEWS
More than 100 teams from the legal and financial services sectors competed in five sports at the 51st Law Society RFC Festival of Sport earlier this month
Part-time status need only be an effective cause of less favourable treatment, rather than the sole cause, the Supreme Court has held in Augustine v Data Cars
Britain’s new acknowledgement that Israel’s occupation is unlawful, and accompanying settlement-goods ban and sanctions, is significant but overdue, argue Danny Friedman KC and Victor Kattan in NLJ this week
New planning fee rises, wider trade union access rights and a service-by-email trap feature in Stephen Gold’s latest Civil Way
Existing defamation law can respond to AI ‘hallucinations’, but allocating responsibility will prove harder where outputs reach users without human intervention
back-to-top-scroll