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Employment solicitor Chris Hadrill offers advice to employees who have been dismissed but have restrictive covenants in their contract of employment

Q. I have been dismissed by my former employer and have made a claim for unfair dismissal in the employment tribunal. However, I think I am stopped from obtaining new employment in the industry that I worked in because of restrictive covenants in my contract of employment. Do these covenants still have effect if I’ve been unfairly dismissed, as I’m claiming?

Restrictive covenants are contractually-binding promises not to do something. In an employment context they’re often known as “post-termination restrictive covenants” – as the name suggests they attempt to bind an employee not to do particular things after that employee leaves their employment. Generally, post-termination restrictive covenants attempt to bind the employee in some or all of the following ways: not to compete with their employer; not to solicit former clients and/or employees; not to misuse confidential information; and/or not to deal with former clients (among other things).

The effect of the restrictive covenants in your contract of employment will depend upon what those restrictive covenants actually are. If there is a non-compete covenant in your contract then this will generally stop you from competing in a particular manner with your employer for a particular time and in a particular geographical area after your employment ends. This can be, as you can imagine, quite restrictive and may stop you from obtaining employment for a period of time after you leave your job.

If you have been unfairly dismissed from your job (but not wrongfully dismissed or in any other way in breach of your actual contract) then the restrictive covenants will still generally take effect – unfair dismissal is a statutory claim and therefore an unfair dismissal will not breach your contract of employment, releasing you from the restrictive covenants. In order to try and argue that the manner of your dismissal has breached your contract of employment (and that you’re therefore not bound by the covenants) you may wish to rely on facts which demonstrate that there has been a breach of your contract – such as a failure to pay you adequate notice pay or a failure to pay you wages that you are owed (such as, for example, commission owed). However, although the benefit of such an argument is that you can potentially obtain release from any restrictive covenants, there is also the burden that such a line of argument can open you up to a counter-claim in the employment tribunal for negligence and/or breach of contract. The benefits of such an argument must therefore be weighed carefully against the potential burdens.

Generally, a “simple” unfair dismissal claim will not allow an employee to argue that they are released from any restrictive covenants in their contract of employment – the employee will instead need to argue that there has been a repudiatory breach of contract by their employer which releases them from the effect of any covenants. However, and as above, this may be a risky argument – it is therefore advisable that an employee obtain suitable legal advice from a specialist if they think that they’re bound by restrictive covenants.

About Chris Hadrill

Chris is a specialist employment lawyer at Redmans. He specialises in contentious and non-contentious employment matters, including breach of contract claims, compromise agreements and Employment Tribunal cases. He writes on employment law matters on a variety of websites, including Direct 2 Lawyers, Lawontheweb.co.uk, LegalVoice, the Justice Gap and his own blog. Contact Chris by emailing him at chadrill@redmans.co.uk

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Testimonials

4.72 Average

89 Reviews

Anonymous

I requested Redmans services on a redundancy case. Both Chris and Rana were great, thoughtful, very professional and responded quickly. They were very clear throughout the entire process, regarding the process and my options and I couldn't feel I had better legal advice for my case. Overall excellent service and I would certainly recommend and use their services again.

Posted 1 day ago

Anonymous

Responsive, patient, thorough and personable - an excellent service.

Posted 5 days ago

Anonymous

The team at Redmans, Chris Hadrill and Sacha Barrett were always very helpful and had expert knowledge to assist me during my employment law matter, I would not hesitate to recommend them to all!

Posted 5 days ago

Arun T

Chris was punctual, attentive and accurate. He answered my questions with clarity and avoided dubiosity. I would recommend him to anyone seeking legal advice within his remit.

Posted 6 days ago

Yulian Z

Great service

Posted 6 days ago

Anonymous

Excellent, professional service and a speedy resolution. Many thanks

Posted 6 days ago

Taral P

Sacha and Chris were both very helpful in closing out my matter. Sacha was very clear in helping me understanding the documents I needed reviewing, providing a professional service throughout.

Posted 6 days ago

Anonymous

Really pleased with the swift and professional service from Redmans. They provided very clear advice and helped conclude my matter with the minimum of stress or delay.

Posted 6 days ago

Matthew L

Redmans were very quick to respond to my initial enquiry, and provided me with a very effective and efficient service, generating a most satisfactory outcome. I would definitely use them again if the need arose.

Posted 6 days ago

Anonymous

First rate service. Warm and friendly whilst exceptionally efficient at the same time. I would highly recommend them.

Posted 1 week ago

Anonymous

Professional and helpful. Thorough and supportive.

Posted 1 week ago

Richard A

Excellent service, prompt replies, great advice

Posted 1 week ago

Anonymous

Very professional services

Posted 1 week ago

Margaret

Redmans Solicitors took a lot of the worry away and were very thoughtful and meticulous in their dealings with my case , thank you very mush , great service and a great job

Posted 1 month ago

Mark B

Prompt efficient service. Hourly, and part thereof, billing got a bit stressful at times - as opposed to flat fee - made me think twice about sending an email or making a quick call when I had a query because it would have eaten up minutes from my budget. But happy with the legal service I received overall and would recommend.

Posted 1 month ago

Anonymous

Chris Hadrill has provided a truly wonderful service and was willing to lend his support and expertise at a time when other solicitors, only wanted to discuss their fees! A clear thinking and down to earth professional, Chris can be trusted to listen carefully to your matter, cut through the fog, and advise you on the best (and most realistic) way forward, saving you time, money and heartache. It will be helpful if you first get your ducks in a row in terms of documents / evidence etc. and then contact Chris, (that’s what we did) as this will help your matter to be dealt with faster. The more organised and together you are the more successful you will be. You'll be fine with Chris, I highly recommend him. Good luck!

Posted 1 month ago

Richard v

Excellent Service

Posted 1 month ago

Anonymous

Very happy from service received. Highly recommend

Posted 1 month ago

Colin W

Very professional and thorough. Sachs who dealt with the bulk of my case was excellent Thank you. .

Posted 1 month ago

Anonymous

I was generally impressed with the fast turn around, efficiency, responsiveness, and consideration of circumstances. I needed a couple of areas of advice quickly and with Redmans help was able to get to a conclusion quickly and with minimum stress. They were friendly and professional throughout - I'd use them again.

Posted 1 month ago

Anonymous

The guidance and assistance I recently received when using Redman's was fantastic. Caroline & Chris were both very informative and understanding walking me through each step. Thank you.

Posted 2 months ago