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

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MOVERS & SHAKERS

London Solicitors Litigation Association—John McElroy

London Solicitors Litigation Association—John McElroy

Fieldfisher partner appointed president as LSLA marks milestone year

Kingsley Napley—Kirsty Churm & Olivia Stiles

Kingsley Napley—Kirsty Churm & Olivia Stiles

Firm promotes two lawyers to partnership across employment and family

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Foot Anstey—five promotions

Firm promotes five lawyers to partnership across key growth areas

NEWS
Freezing orders in divorce proceedings can unexpectedly ensnare third parties and disrupt businesses. In NLJ this week, Lucy James of Trowers & Hamlins explains how these orders—dubbed a ‘nuclear weapon’—preserve assets but can extend far beyond spouses to companies and business partners 
A Court of Appeal ruling has clarified that ‘rent’ must be monetary—excluding tenants paid in labour from statutory protection. In this week's NLJ, James Naylor explains Garraway v Phillips, where a tenant worked two days a week instead of paying rent
Thousands more magistrates are to be recruited, under a major shake-up to speed up and expand the hiring process
Three men wrongly imprisoned for a combined 77 years have been released—yet received ‘not a penny’ in compensation, exposing deep flaws in the justice system. Writing in NLJ this week, Dr Jon Robins reports on Justin Plummer, Oliver Campbell and Peter Sullivan, whose convictions collapsed amid discredited forensics, ‘oppressive’ police interviews and unreliable ‘cell confessions’
A quiet month for employment cases still delivers key legal clarifications. In his latest Employment Law Brief for NLJ, Ian Smith reports that whistleblowing protection remains intact even where disclosures are partly self-serving, provided the worker reasonably believes they serve the ‘public interest’ 
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