Restrictive covenant in a 19 year-old employment contract was unenforceable
Matthew Smith, partner in our Employment law team looks at a recent case concerning restrictive covenants in a contract of employment which tried to prevent a departing employee from providing 'similar' goods or services to the employer's competitors or clients after his employment ended. The employer was unable to enforce the restrictions partly because they were drafted at a time when the employee was too junior for the restrictions to be enforceable (even though he was later promoted into a role where they might have been considered enforceable) and partly because the restrictions were too wide in any event.
It is an important reminder for employers that standard restrictive covenant clauses which are not tailored to the individual's role and level are often unenforceable, and also that such restrictions must be kept up to date when an individual is moved to another role or is promoted. Click here to read the article in full.