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Covenants: Two-year non-competition clause was unreasonable

This report relates to 1 case(s)

A non-competition covenant prohibiting a former employee from working as an estate agent within a specified area for two years after leaving his employer was unreasonable and unenforceable, holds the High Court in Barry Allsuch & Co (a firm) v Harris 4.5.01. No other estate agency in the area imposed a non-competition covenant for longer than six months, and although it did not follow that the covenant was unreasonable simply because it was unique, there was no evidence to suggest that the employer's business was so different from that of other estate agencies that a longer period could be justified.