Restrictive Covenants – Reasonableness and Enforceability
Posted in : Tribunal Guidance from Kennedys on 18 March 2021 Issues covered: Restrictive Covenants; Restraint of Trade; Breach of Contract; Industrial Tribunals Extension of Jurisdiction Order (Northern Ireland) 1994Although the focus of this feature is the Employment Tribunal, unfortunately an employment tribunal does not have jurisdiction to consider claims concerning restraint of trade [i]. In this article we therefore look the Northern Ireland High Court and the recent decision of Holchem Laboratories Limited v James Henry ICOS No:20/79096 to examine its considerations on the enforceability of post-termination restrictive covenants. This Judgment was delivered on 3 February 2021 following a rare, contested hearing on this subject.
The Plaintiff in this case, Holchem Laboratories, is a manufacturer of speciality hygiene products for the agri-food sector. The Defendant, James Henry,
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