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Restrictive covenants: One-year anti-competition and two-year non-solicitation covenants both unenforceable

This report relates to 1 case(s)

In Scully UK Ltd v Lee [1998] IRLR 259, the Court of Appeal holds that a 12-month anti-competition clause and a 24-month non-solicitation clause were both in unreasonable restraint of trade, and so void and unenforceable - the former for being unacceptably wide, and the latter for being of an unreasonable duration. The anti-competition clause was broader than necessary to protect the employer's legitimate interest in its confidential information, in that it prohibited the ex-employee from being involved in businesses which were not in competition with it.