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Transfer of undertakings: Restrictive covenant negotiated by transferee with transferor's employees was void

This report relates to 1 case(s)

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    Crédit Suisse First Boston (Europe) Ltd v Padiachy and others [1998] IRLR 504 HC (0 other reports)

In Crédit Suisse First Boston (Europe) Ltd v Padiachy and others [1998] IRLR 504, the High Court refuses to grant an injunction in favour of the transferee of a business stopping three of its employees from working for a competitor, after the termination of their employment, in breach of a covenant they entered into with the transferee whilst still employed by the transferor. This change in the employees' terms of employment was void under the Transfer of Undertakings Regulations, since it occurred by reason of the transfer, even if the employees were better off overall as a result of the agreements they negotiated with the transferee before the business was transferred.