header-logo header-logo

04 June 2009 / Bruce Gardiner , Ming Yee Shiu
Issue: 7372 / Categories: Features , Property , Employment
printer mail-detail

Restrictive covenants

Part two: Bruce Gardiner & Ming Yee Shiu continue their guide to enforcing or resisting covenants

* * * * * *

In the first part of this article we addressed the first four points of a 10 point checklist for giving clients initial advice in a restrictive covenant situation (see NLJ, 29 May 2009, p 768). We discussed the circumstances in which restrictive covenants are enforceable. But what if there are no restrictive covenants, or the covenants appear to be unenforceable? And what practical issues arise when seeking an interim injunction?

Can employers rely on any implied terms or IP rights?

In the absence of valid post-termination restrictive covenants, it is worth considering possible pre-termination breaches of other contractual terms, particularly implied terms. All employees are under implied duties of fidelity, encompassing several separate strands, including duties of honesty, good faith and a duty to preserve confidences. During employment, an employee cannot compete with his employer or work for a rival. However, he is not restricted from taking preliminary steps

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

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

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
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
back-to-top-scroll