The following Employment practice note provides comprehensive and up to date legal information covering:
This Practice Note considers the legal and practical issues that may arise when an employee wishes to leave his current employment and move to work for a competitor. The note envisages that the competitor may be a pre-existing organisation, or a new business set up by the employee (acting alone, or with others, such as fellow employees) to undertake the competitive activity.
The first step when advising an employee who is considering leaving his current employee for a competitor is to consider the terms of the contract of employment, and to ascertain the duties and restrictions that apply to the employee.
Ideally, the employee will have been well-advised when he entered into the contract in the first place, as, depending on the relative bargaining power of the parties, this is obviously the best time to negotiate any duties provisions and post-termination restrictions so that they are a sensible compromise between the employer's interests and those of the employee.
However, in many cases, the employee will not have scrutinised the post-termination restrictions at all, or will have accepted them even where they are very wide, on the basis they can be disputed at the point of the employee leaving to compete. This is unwise:
generally the employer will have more funds available for litigation and even where clauses are unreasonable, can push the
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
When defendants are guilty, they have a choice to plead guilty or to put the prosecution to proof. When they plead guilty they may benefit from a reduction in their sentence as a result, see Practice Note: Credit for guilty plea. However, the Sentencing Council's overarching guidelines on reduction
This Practice Note covers the legal framework and regulatory guidance to be considered in determining whether an arrangement constitutes a contract of insurance and the possible consequences of carrying on activities relating to a contract of insurance without the requisite regulatory permissionsThe
Overlapping insurance policesThere are various reasons why an insured may end up with overlapping insurance cover, whether deliberately or otherwise.Examples include the situation where the insured takes the benefit of other insurance arranged by another party or where, in the commercial world, risk
STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose significant limitations on the ability for a creditor to seek a winding-up order against a company. For further reading, see Practice Note: Corporate
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.