redundancy and covenant

James Fairchild
Member - 257 posts

I would expect so, yes, though it depends which clauses. Something about confidentiality of data then yes, but something like not working in a specific industry for 12 months then perhaps not.

I'm not sure whether you are a company looking to enforce something, or a worker looking to get out of something, but in either case, I would advise you take the employment contract and any severance deal to a competant employment solicitor.

Lorna Cowie - MacRoberts Solicitors
Online advisor - 1 post

Where an employer makes an employee redundant, the employer can still enforce the restrictive convenants contained in the employee's contract of employment subject to the following:
1. If the employer breaches or has breached the employee's contract, eg. by not adhering to the notice provisions, the restrictive covenants will be not be enforceable.
2. The restrictive covenants will only be enforceable if this is consistent with the wording of the contract, eg. there is no provision saying that restrictive covenants will not be enforceable upon redundancy or that restrictive covenants will only be enforceable if the employee terminates the contract (and not the employer).
3. Restrictive covenants will only be enforceable if they go no further than necessary to protect the company's legitimate business interests. Accordingly, courts will not enforce restrictive covenants that go further than necessary in terms of duration or geographical extent for example. If, in future, you become aware that the employee intends to breach, or has breached, the restrictive covenants and you intend to take legal action against the employee, you should take legal advice on the enforceability of the restrictive covenants.