Open Navigation

Post Termination Restrictions

Protecting the business interest

Post-termination restrictions are often used as means to try and ensure that key employees do not pass on expertise or business confidential information to competitors when moving between roles.

It is important to remember that for restrictions to be enforceable, they must not go further than is reasonably necessary to protect legitimate business interests. This means that care should be taken to ensure that the restrictions are drafted with reference to the particular duties of the employee, their role, their access to confidential information, and with limitations to the period and geographic scope of the restriction. For example whilst it will not be enforceable to have a blanket ban on employees leaving to join competitors, it may well be enforceable to prevent them from doing so for a period of time.

If the employer wants to protect their business interests by imposing new restrictions as part of the settlement agreement, additional payments or ‘consideration’, should normally be attributed to the restrictions in order to assist enforceability, and also to protect the ex-gratia payment from arguments that it is the consideration and as such taxable.

News

Remote Working

Back with a Bump: The Legalities and Practicalities of Agile Working

As the summer draws to a close, employers in all sectors are beginning to welcome staff back to offices and other physical workplaces. However, the pandemic has shifted expectations on all sides, with agile working (involving a mix of home and office working) increasingly becoming the norm in certain sectors. Recruitment Working from home has…

Read More
CoronaVirus

Update: “Long Covid”

“Long Covid” refers to the fact that some people seem to suffer from the effects of Covid-19 for significantly longer than others, sometimes for weeks and months after first contracting the illness. Long Covid undoubtedly presents difficulties for employers managing staff absences and decreased performance or productivity from employees who are suffering from an illness that…

Read More

Managing A Return To The Workplace

Today sees England move to Step 4 of the Government’s COVID roadmap.  Social distancing and mask wearing rules are no longer mandatory in public spaces, but the Government has failed to clarify what steps it expects employers to take before welcoming staff back to offices and other workplaces.  Managing a successful return to the workplace…

Read More