header-logo header-logo

17 April 2014 / Tom Walker
Issue: 7603 / Categories: Opinion , Terms&conditions , Employment
printer mail-detail

Time up for template covenants?

Tom Walker & Richard Marshall explain why some employees may have less waiting time between jobs in future

Over the last year, a series of cases has given useful guidance on the permissible length of covenants seeking to restrict an ex-employee’s client dealings.

Post-termination restraints are void unless the employer can demonstrate a legitimate business interest and show that the wording of the covenant goes no further than what is reasonable. It is accepted that client goodwill is a protectable interest and that relatively short periods of restraint, some six to 12 months, are permissible. The recent case of East England Schools CIC v Palmer and Sugarman [2013] EWHC 4138 (QB) challenged this approach in the context of a school recruitment agency.

An employee with six-month client covenants, Palmer, began to contact her former client schools very soon after joining her new employer, Sugarman. Her former employer, East England Schools (EES), sought an injunction and the matter ultimately came to a full trial to assess the reasonableness of the client covenants. The

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

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

NLJ Career Profile: Hugo Plowman, Mishcon de Reya

From global fraud cases to fishing off-grid, Mishcon de Reya’s chair of dispute resolution Hugo Plowman discusses mentors, management switching off

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law—Jennifer Hudec, Ciara Florey, Alice Ferguson & Ruth Wynn

Maguire Family Law announces partner promotion and new hires amid a record year for enquiries

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis—Rebecca Parry & Hannah Gamble

Switalskis wills and probate team extends reach with two appointments

NEWS
Restrictions on workplace non-disclosure agreements could make settlements slower, more complex and more expensive when reforms expected in 2027 take effect
Private prosecutors face closer scrutiny under Crown Prosecution Service guidance designed to strengthen accountability and consistency when intervention is requested
Foreign states cannot necessarily claim immunity for cyber operations launched abroad against computers in Britain, following a divided Supreme Court ruling
Defendants who make unsupported complaints about their lawyers risk losing legal aid while confiscation proceedings continue without representation
Lawyers advising Russian clients face different sanctions restrictions across the UK, EU and US, despite their shared objective of increasing pressure on Russia
back-to-top-scroll