Decisions on post-termination restrictions and garden leave in employment contracts
Decisions on post-termination restrictions and garden leave in employment contracts

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

  • Decisions on post-termination restrictions and garden leave in employment contracts
  • Garden leave provisions
  • Non-compete (no competition) provisions
  • Non-solicitation provisions
  • Non-dealing provisions
  • Non-disclosure (confidentiality) provisions
  • Team moves
  • Miscellaneous restrictions

Decisions on post-termination restrictions and garden leave in employment contracts

This Practice Note summarises key decisions on the enforceability of post-termination restrictions (restrictive covenants) in contracts of employment and sets out examples of cases which practitioners may find helpful as illustrations of the courts’ approach.

For a Practice Note summarising key decisions on restraint of trade provisions in commercial and corporate contracts, see Practice Note: Decisions on restrictive covenants in commercial contracts.

Garden leave provisions

Employers must provide sufficient evidence when attempting to establish a legitimate business aim (ICAP v Berry)
RoleCEOICAP v Berry [2017] EWHC 1321 (QB)
See also News Analysis: Garden leave and TUPE (ICAP Management Services v Berry)
Terms of restriction12-month notice period with garden leave
ValidityValid
Notable pointsThe protection of confidential information in the employee’s possession was a legitimate business aim. The employee had freely agreed to the garden leave provision within his contract. In addition, the employee was unlikely to be out of pocket or to suffer a reduction or stagnation in skills during the period. The balance of convenience lay in favour of the employer.
No obligation for an employee to be paid during the period covered by an injunction unless not doing so would cause financial hardship (Sunrise Brokers LLP v Rodgers)
RoleDerivatives brokerSunrise Brokers LLP v Rodgers [2015] IRLR 57
See also News Analysis: Undertaking

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