A non-solicitation clause restricting the employee’s ability to approach all clients of the company for a period of six months has been held to be enforceable

David McRae
31st Aug 2012

Recently, the Mercantile Court has found that a non-solicitation clause restricting a director of a company from dealing with all clients of the company for a period of six months, rather than those with whom the employee had had dealings prior to the termination of his employment, was enforceable.

In reaching its decision, the Court took into account the employee's seniority, the relatively small size of the employer and the fact that the employee had been acquainted with all of the employer’s customers during the course of his employment.

 

This case demonstrates the need to consider the nature of restrictive covenants and how they should be applied to each particular employee, having regard to their particular role, and the extent to which the restrictions are necessary to protect legitimate business interests.

 

The full case can be found here here (Case name: Safetynet Security Ltd v Coppage and another [2012] EWHC B11).

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