In 2017, after being promoted to joint head of Egon Zehnder`s financial services practice, the applicant separated from the company and announced her intention to accept a position with a competitor. Id. at . The company sought an injunction to enforce the non-compete clause. Id. at . The applicant argued that the non-competition clause went beyond the need for the undertaking to protect its legitimate property interests, since the words `or interested parties` would prevent it from holding even a minority stake in the business of a competitor. Id. at .
The company, for its part, argued that even if the clause was illegal, the Tribunal had to separate it to save the non-competition clause. If you are concerned that your plans to set up your business are contrary to the non-compete agreement, you should consult specialized legal counsel to ensure that you understand the potential risks. It`s best to get advice before you quit or invest in your new business. Non-compete rules often stop the departure of employees who work for competitors, start a competing business or work with former customers, often for many months after leaving an employer. Instead of encouraging entrepreneurs, the removal of [non-compete clauses] could actually encourage entrepreneurs or investors to think twice about setting up start-ups in the UK » – Stefan Martin, Hogan Lovell`s restrictive agreements and non-compete clauses (sometimes also called post-dismissal restrictions) are clauses in an employment contract or settlement agreement preventing an outgoing employee from preventing customers o u the keys to competition rbeiter by his former employer. or work for a competitor. An employer can only protect a legitimate business interest and restrictions must be narrowly defined to be proportionate. The government is working to limit the use of non-compete rules to promote a more entrepreneurial culture, particularly in the technology sector. In most cases, it is difficult for an employer to demonstrate that an agreement that would prevent you from working with a competitor for up to 12 months after your leave is appropriate. However, it always depends on the type of activity of your employer, your position in the company, geographical restrictions and also the legitimate interests of your employer. In some situations, a 12-month non-compete clause is appropriate. The claimant joined Egon Zehnder in 2004 as a highly remunerated financial services advisor.
Id. at . . . .