Promoting Employees - How Restrictive are Restrictive Covenants?

Restrictive covenants that limit what an employee can do after leaving an employer are extremely difficult to get right, especially non-compete clauses, where the employee is limited in competing with the business for a fixed period after termination.

In the recent case of Patsystems Holdings Limited v Neillyit was held that a restrictive covenant that was unenforceable when it was entered into, could not be turned into a valid one by a subsequent change of circumstances, in this case, a promotion.

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Posted on 17/01/2013 by Matthew Kilgannon