TUPE and Restrictive Covenants - Update from Dr John McMullen October 2020

Posted in : TUPE Updates on 23 October 2020
Dr John McMullen
Spencer West LLP
Issues covered: TUPE; Contracts of Employment

In the recent England and Wales High Court case of P14 Medical Ltd v Mahon [2020] EWHC 1823 Cavanagh J has expressed the view that it is beyond doubt that a restrictive covenant in a transferring employee’s employment contract can transfer under TUPE.

In this case a TUPE transfer occurred. Mr Mahon was a transferring employee. After the transfer, Mr Mahon resigned from the transferee, P14 Medical, to join a competitor of the business. But Mr Mahon’s transferred employment contract had restrictions which forbade that. Could P14 Medical sue to enforce those restrictions?

In principle, yes, said Cavanagh J. As the effect of TUPE is that the contracts of employment of all employees in the part

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This article is correct at 04/11/2020

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Dr John McMullen
Spencer West LLP

The main content of this article was provided by Dr John McMullen. Contact telephone number is 07769299610 or email drjohn.mcmullen@spencer-west.com

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