A restrictive covenant preventing former employees of an employment agency in the City of London from dealing with and soliciting custom from all 6,000 clients of their former employer was too wide.
In Lansing Linde Ltd v Kerr the Court of Appeal holds that the High Court was entitled to refuse an employer's application for an interim injunction restraining a former employee from working for a competitor in breach of a restrictive covenant.
Where an employee is wrongfully dismissed, any outstanding contractual obligations of the injured employee are extinguished upon the ending of the employment contract, holds the High Court in Briggs v Oates.
In Provident Financial Group plc and Whitegates Estate Agency Ltd v Hayward the Court of Appeal upholds a judge's refusal to grant an injunction to restrain the group's former finance director from joining a competitor before his notice period had expired.
In Faccenda Chicken Ltd v Fowler and others the Court of Appeal upholds the High Court's ruling that, in the absence of a restrictive covenant, a company's former employees were free to make use of their knowledge of that company's customers and pricing structure while working for a competitor, thereby enabling them to solicit trade from their former employer's customers.
In Bull v Pitney Bowes Ltd  2 All ER 384 HC, the High Court held that clauses in restraint of trade are void unless the employer can show that they are no more than is required to protect its interests, but even then, if the employee can show that the clause is contrary to the public interest, it remains void and unenforceable.
HR and legal information and guidance relating to non-competition clauses.