Article Tag: Non-compete covenant

Restrictive Covenants and The Blue Pencil Test

Restrictive covenants are commonly incorporated into employment contracts in order to restrict a former employee’s actions post-termination and to protect the company’s legitimate business interests. Recently, the Supreme Court considered restrictive covenants that appeared to be wider than was reasonable and therefore potentially unenforceable. The question to be determined was whether words could be severed… Read more »

Are your restrictive covenants worth the paper they are written on?

A recent decision of the High Court in Patsystems v Neilly has called into question the validity and timing of restrictive covenants, which should serve as a warning to all employers who have already entered into or are considering entering into these arrangements with their employees. The employee started working in June 2000 in the… Read more »