header-logo header-logo

The long and short of it

08 May 2015 / Tom Walker , Richard Marshall
Issue: 7651 / Categories: Features , Employment
printer mail-detail

Tom Walker & Richard Marshall consider the length of restrictive covenants

The last two years have seen several cases in which lengthy client contact restrictive covenants on termination of employment have been upheld by the courts. It has been said that covenants are currently “employer friendly” and 12 months can be applied with confidence.

This would be a dangerous assumption to make. Going back to the basics of covenant law, a restrictive covenant is void for restraint of trade unless it provides no more than reasonable protection for a legitimate interest. This was famously stated in the 2005 case of TFS v Morgan [2004] EWHC 3181 (QB), [2005] IRLR 246. It is a hasty practitioner who applies template covenants to an employment contract without considering the nature of the employee’s activities, client contact and seniority.

Covenants upheld

In each one of these recent cases, there has been clear justification for the period of restraint:

  • Coppage v Safeynet Security Limited [2013] EWCA Civ 117, [2013] All ER (D) 308 (Feb): 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

Freeths—Ruth Clare

Freeths—Ruth Clare

National real estate team bolstered by partner hire in Manchester

Farrer & Co—Claire Gordon

Farrer & Co—Claire Gordon

Partner appointed head of family team

mfg Solicitors—Neil Harrison

mfg Solicitors—Neil Harrison

Firm strengthens agriculture and rural affairs team with partner return

NEWS
Conveyancing lawyers have enjoyed a rapid win after campaigning against UK Finance’s decision to charge for access to the Mortgage Lenders’ Handbook
The Crown Prosecution Service (CPS) has launched a recruitment drive for talented early career and more senior barristers and solicitors
Regulators differed in the clarity and consistency of their post-Mazur advice and guidance, according to an interim report by the Legal Services Board (LSB)
The Solicitors Act 1974 may still underpin legal regulation, but its age is increasingly showing. Writing in NLJ this week, Victoria Morrison-Hughes of the Association of Costs Lawyers argues that the Act is ‘out of step with modern consumer law’ and actively deters fairness
A Competition Appeal Tribunal (CAT) ruling has reopened debate on the availability of ‘user damages’ in competition claims. Writing in NLJ this week, Edward Nyman of Hausfeld explains how the CAT allowed Dr Liza Lovdahl Gormsen’s alternative damages case against Meta to proceed, rejecting arguments that such damages are barred in competition law
back-to-top-scroll