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A restrictive covenant preventing an ex-employee from soliciting customers from its former employer can be valid, even if the clause is not restricted to customers that the ex-employee has had recent dealings with.
In Coppage v Safety Net Services, Mr Coppage appealed against a decision that he had breached a non-solicitation clause. He argued that the clause was unreasonable, and therefore invalid, as it was not restricted to those customers he had dealt with in the last 12 months of his employment.
The Court of Appeal dismissed the appeal, stating there was nothing to suggest the trial judge had erred in deciding that the clause was reasonable overall. The fact that the covenant was limited to 6 months was a key factor.
The court reiterated that these cases are highly dependent on their specific facts. It is therefore important to remember that restrictive covenants will be void, unless the employer can show it has a legitimate business interest to protect and that the restriction goes no further than is reasonably necessary.
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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