Unreasonable Restrictive Covenant Declared UnenforceablePosted in : Quarterly Reviews on 22 August 2016
A restrictive covenant is a clause in an employment contract which is designed to prevent the solicitation of customers, clients, suppliers, other employees, or general competition for a defined period after the employee ceases his or her employment.
The purpose of it is to protect the employer's confidential information, customer connections, its goodwill and the stability of its workforce. However, it is important to note that such covenants are not always appropriate or even enforceable. This article will examine a recent case in which the restricted covenant was declared unenforceable.
Facts of the Case
Mr Thornton (the “Respondent”) worked for Bartholomews Agri Food Limited (the “Applicant”) as an agronomist. The Respondent started his employment in 1997 as a trainee and over the next 18 years, despite taking a de facto more senior
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This article is correct at 22/08/2016
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