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Non solicitation clauses are commonplace in senior employees’ employment contracts. But how can an employer show that an employee has ‘solicited’ its clients? In the case of Towry EJ Limited v Barry Bennett and others, the employer was not able to show that their former clients had moved to a former employee’s current business due to any request, persuasion or encouragement by that former employee. Solicitation could not be inferred from the fact that a “tidal wave” of clients had moved to the former employee’s business, even though that might well look suspicious.
With the burden of proof lying squarely with the employer in trying to enforce restrictive covenants, careful consideration needs to be given to their drafting at the outset. A non-dealing clause may have proved more effective in this case with the employee being placed on garden leave to prevent them from having contact with key clients during their notice period.
Free movement between the UK and the EU ended on 31 December 2020. Since 1 January 2021, a new points-based immigration system applies to all migrants wanting to come to the UK, whether they are EU citizens or not.
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The Government has announced a consultation exercise into the possible removal of non-compete clauses in employment contracts which will run until 26 February 2021.
The government has now announced further changes to the Job Support Scheme (now renamed the Job Support Scheme Open), with both the percentage of working hours and the employer contribution to unworked hours dropping.
On 14 October 2020, The Restriction of Public Sector Exit Payments Regulations 2020 (the “Regulations”) were made into law and will come into force on 4 November 2020.
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