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Business, taken personally.

Restrictive covenants in employment contracts

Posted by Lotty Reeves on 24th April 2014

Businesses will welcome a High Court decision which held that non-solicitation and non-dealing restrictive covenants in the employment contract of a recruitment consultant were enforceable.

The employer had a legitimate interest to protect, despite the fact that recruitment information was widely available on social media. The court also seemed to recognise that the fragility of customer loyalty makes it all the more vital for the employer to enjoy protection. This being said, it remains critical to ensure that restrictions are carefully drafted at the outset, as each case turns on its own facts, and an assessment of the genuine business needs of the employer versus the freedoms for an employee to choose for whom he/she should work.


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