A recent Court of Appeal decision underlines how useful restrictive covenants in employment contracts can be in protecting an employer’s business. The court dismissed the appeal of a former employee and director who had been ordered to pay at least £50,000 in damages, following a breach of his post-termination restrictive covenants. His contract of employment contained a restriction against the solicitation of any customers of his former employer for a period of six months following the termination. The court held that the restriction was reasonable, despite its breadth, due to its relatively short duration.
A checklist that explains what restrictive covenants are and how they can be used in employment contracts to protect a business’s interests can be provided on request. Please contact me for further details.
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