Restrictive Covenants

Non-Compete Restrictions: Can you Stop an Employee from Having an Interest in a Competing Business?

The Court of Appeal in Tillman v Egon Zehnder Ltd overturned an earlier High Court decision and struck out a non-compete restriction in a senior employee’s contract of employment because it prevented her from having “any interest” in any competing business. This enabled her to commence work for a competing business immediately following the termination of her employment.  

Protect Your Business: Lobby Against the Government’s Plans to Ban Non-Competes

Some people assert that during May, June and July 2016 one or two things have happened in the political and legal world which may impact on business. And they are right: in the face of some extremely stiff competition, the nuttiest idea of the year is BIS’ proposal to ban post-termination restrictions in employment contracts.

If you care at all about your business at all, please read on. If you are intending to leave your employer and rip out all or part of that business, please also read on.

EU referendum: Would a Brexit free the UK workplace from EU red tape?

The Leave campaign has said that by 2020 it will impose visa requirements on all foreign workers seeking employment in the UK.

The pre-24 June scenario of EU workers having “freedom of movement” (no visas, no additional costs of hiring) will no longer apply. An Australian-type points based system will be introduced. This means employers have to satisfy a “resident labour market test” for all foreign workers.

Enforcing Post-Termination Restrictions

In May 2016 the Government launched a call for evidence as to whether non-compete restrictions are stifling entrepreneurship.  Caroline Glacken of Constantine Law looks at a recent case which demonstrates the relevance of the contractual bargain that is made between the employer and the employee and the power of an employer to protects its commercial interests.