10.07.2015 Views

1E9Ct5D

1E9Ct5D

1E9Ct5D

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

demonstrate that a particular covenant is necessary to protect its legitimate businessinterests (traditionally confidential information, clients, stability of its workforce nondisruptionwith supplies) and that, in addition, the covenant is drafted to provide no morethan the minimum necessary level of protection to those interests. 59In short the ambitof the covenant, is not too wideand the length of the covenant is not too long. Notethere is no obligation to pay an employee during a period over which a restrictivecovenant applies and, therefore, within the UK there is generally no provision forpayment.b. Prevalence of Restrictive CovenantsRestrictive covenants will generally be found within contracts for senior executives andalso within the contracts of more junior employees within many industries. For example,restrictive covenants will often be found in the contracts of employees within thefinancial services sector, particularly for employees in broking and other front office,sales and marketing roles. Restrictive covenants will often also be contained withinother sectors for those in middle management or involved in direct dealings with clientsor where protection of trade secrets and other proprietary information is regarded ascrucial.c. Types of Restrictive CovenantsIn the UK it is common to find the following types of covenant.1. Non-Solicitation Restriction59 Allied Dunbar (Frank Weisinger) Ltd v Weisinger [1988] IRLR 60.3082723.3

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!