Damages in employee competition claims
Damages in employee competition claims

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Damages in employee competition claims
  • Damages and other remedies
  • Typical claims
  • Measure of damages
  • Negotiating damages (previously known as ‘Wrotham Park’ damages)
  • Whether to pursue a damages claim
  • Further resources

The remedies available in cases involving attempts to enforce post-termination restrictions may conveniently be divided between:

  1. interim remedies available before final trial, and

  2. remedies available following the final trial of the case

Interim remedies typically consist of injunctions—see Practice Notes:

  1. Interim injunctions in employee competition claims

  2. Springboard injunctions in employee competition claims

  3. Delivery up orders in employee competition claims

  4. Search orders in employee competition claims

  5. Freezing orders in employee competition claims

Although the court will now usually order an expedited trial in employee competition cases, it is often the case that claims involving the enforcement of post-termination restrictions will never reach a final trial—the main battle between the parties tends to take place at an interim stage where the employer seeks, and the employee resists, the granting of injunctive relief.

Once that initial battle is over, which tends to be relatively quick and cheap in terms of overall litigation costs, the parties tend not to pursue the much more time-consuming and expensive process leading to a full trial and conclude a settlement instead.

Damages and other remedies

Where the case does proceed to trial, the final remedies available include:

  1. damages (see below), or

  2. an account of profits (see Practice Note: Account of profits in employee competition claims), and/or

  3. final and permanent injunctions (see Practice Note: Final and permanent injunctions in employee competition claims),