Restrictive covenants: Court cuts employers some slack on severance rules

The Supreme Court has adopted a more liberal approach to severing words from a non-compete clause to make it enforceable, reports Claire Darbourne ‘In some cases, it may be possible for courts to sever unlawful words or provisions from the rest of a restrictive covenant to create an enforceable restriction (the ‘blue pencil’ test).’ On …
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Agency: Knit a problem

Sandi Simons and Melanie Hart consider a recent judgment on commercial agency ‘Principals usually prefer to have the certainty of an indemnity election written into their contracts and many agreements will be drafted in such a way as to ensure this.’ A decision by the High Court in November 2015 has provided welcome clarification for …
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Post-Termination Restrictions: A year in the garden

Gary Freer considers a recent High Court ruling on whether a 12-month garden leave clause was reasonable ‘The employer needs a reasonable period in which to establish a relationship between the new investment manager and the clients. Some factors, such as personal chemistry, are immediate. However others, such as demonstrating integrity, reliability and good performance, …
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