Non-competition clauses

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  • Restrictive covenants: Non-competition covenant in severance agreement held to be reasonable

    Date:
    1 March 2000
    Type:
    Law reports

    In Turner and others v Commonwealth & British Minerals Ltd, the Court of Appeal holds to be reasonable a covenant in a severance agreement which, properly construed, restricted former employees and directors of a company from competing for 12 months in any aspect of the company's business being carried on, when their employment terminated, in which they were actually involved during their employment.

  • Restrictive covenants: Non-dealing covenant justifiably extended to prospective customers of employer

    Date:
    1 March 2000
    Type:
    Law reports

    A covenant prohibiting a former employee of a company for one year from dealing with anyone who was negotiating with the company in the 12 months before he left its employment, and with whom he had contact, was reasonable and not too vague to be enforced, holds the High Court in International Consulting Services (UK) Ltd v Hart.

  • Restrictive covenants: No interim injunction where employer failed to show loss

    Date:
    15 February 1999
    Type:
    Law reports

    An employer was not entitled to an interim order enforcing covenants prohibiting a former employee from disclosing confidential information and enticing away customers, because it could not show that any potential or actual harm would arise from breach of those covenants, holds the Court of Session in Jack Allen (Sales & Service) Ltd v Smith.

  • Restrictive covenants: Covenant against solicitation of any employees was too wide

    Date:
    15 February 1999
    Type:
    Law reports

    A restrictive covenant derived from both the terms of sale of a business and a contract of employment, prohibiting an employee from soliciting any staff from his employer for at least three years, was wider than reasonably necessary for the protection of the employer's interest in maintaining a stable workforce and therefore unenforceable, holds the High Court in TSC Europe (UK) Ltd v Massey.

  • Transfer of undertakings: Regulations made restrictive covenant negotiated by transferee with transferor's employee unenforceable

    Date:
    15 January 1999
    Type:
    Law reports

    A covenant entered into by an employee of the transferor of an undertaking with the transferee that he would not join a competitor for three months after termination of his employment was unenforceable by virtue of the Transfer of Undertakings Regulations, holds the Court of Appeal in Crédit Suisse First Boston (Europe) Ltd v Lister.

  • Restrictive covenants: Liquidated damages claim for breach of non-solicitation clause dismissed

    Date:
    1 December 1998
    Type:
    Law reports

    A covenant in restraint of trade which imposed a three-year restriction on an accountant on working for the firm's clients after his employment terminated was unreasonable and unenforceable, holds the High Court in Taylor Stuart & Co v Croft.

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

    Date:
    15 October 1998
    Type:
    Law reports

    In Crédit Suisse First Boston (Europe) Ltd v Padiachy and others, 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.

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

    Date:
    1 September 1998
    Type:
    Law reports

    In Scully UK Ltd v Lee, 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.

  • Contracts of employment: No implied right to send senior dealer on garden leave

    Date:
    1 July 1998
    Type:
    Law reports

    In the absence of an express contractual term entitling a bookmaker to send the senior dealer in its spread-betting business on garden leave, it was under an obligation to allow him to perform the duties of the post to which it had appointed him in accordance with his contract both during his notice period and before he gave in his notice, holds the Court of Appeal in William Hill Organisation Ltd v Tucker.

  • Contracts of employment: Employee entitled to notice pay despite working for competitor

    Date:
    15 June 1998
    Type:
    Law reports

    An employee's contract of employment continued after an exchange of letters between the employee, giving one month's notice of termination, and her employer, confirming that it did not want her to work out her notice period and that her salary would be paid in lieu at the end of the notice period, holds the Court of Appeal in Hutchings v Coinseed Ltd.

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HR and legal information and guidance relating to non-competition clauses.