Search our news, events & opinions

On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.

20 August 2014 0 Comments
Posted in Employment, Opinion

Badly-worded covenants can hurt employers

Posted by , Partner

The Court of Appeal has ruled that a badly drafted restrictive covenant should not be rewritten to make it enforceable.

The ruling in the recent Prophet vs Huggett case is a timely reminder for employers about the dangers of agreements that don’t stand up to scrutiny.

The case had come to court after Mr Huggett had decided to leave his role as sales manager for Prophet, a software developer to the fresh food industry, to join one of their competitors.

The Warwickshire-based business had resorted to legal action to try and enforce the covenant, while Mr Huggett’s lawyers argued that the wording of the non-compete clause didn’t make sense.

At the High Court, the judge was sympathetic to the business. He acknowledged the covenant was defective, but decided it could not have been the intention of the parties to come to a meaningless agreement and allowed the wording to be altered.

Now, however, the Court of Appeal has set the original judgement aside and ruled that a clause that does not provide protection to the employer could not be corrected by a judicial rewrite. Prophet is therefore powerless to stop Mr Huggett taking up the new role.

The case highlights the importance of businesses making sure that restrictive covenants are accurate and well thought out, to ensure they provide adequate protection.

For more information about Royds employment services, contact Richard Woodman, Gemma Ospedale, Caroline Doran, Kevin James and Helen Murphie on 0207 583 2222.

Leave a comment

Thank you for choosing to leave a comment. Please keep in mind that comments are moderated and please do not use a spammy keyword or a domain as your name or it will be deleted.

*required*

**required*

*optional*

Employment

It pays to employ the right employment solicitor

Learn more

Partner

T: 020 7842 1439 (DDI)
Email

Search our news, events & opinions