This is a preview. To continue reading, register for free access now. Register now or Log in

Restrictive covenants: Poorly drafted unambiguous non-competition covenant was nonetheless binding

expand
Prophet plc v Huggett [2014] IRLR 797 CA (1 other report)
- Drafting defect in restrictive covenant: Court of Appeal permits ex-employee to work for competitor
  
  Date:
  
  25 July 2014
  
  The Court of Appeal has held that an employer was bound by the terms of a restrictive covenant in an employment contract that, on a literal reading, had the unintended result that an ex-employee was not restricted from working for a competitor.

In Prophet plc v Huggett [2014] IRLR 797 CA, the Court of Appeal held that an unambiguous non-competition covenant was binding even though, because the drafting was poorly thought through, it was "toothless" and the employee was free to take up employment with a competitor.

Employment law cases

Restrictive covenants: Poorly drafted unambiguous non-competition covenant was nonetheless binding

Drafting defect in restrictive covenant: Court of Appeal permits ex-employee to work for competitor

Read more items tagged with the same topics

About this resource

Templates

When To Include