This issue was discussed by the High Court in England the recent
case of Patsystems Holdings Ltd v Neilly.
Neilly initially joined Patsystems in 2000 as a junior salesman.
He was given a contract including a restrictive covenant preventing
him from joining competitor firms for 12 months after termination.
Bog standard. On his promotion to Director of Global Accounts in
2005, he was asked to sign a letter recording the promotion, which
outlined his new salary etc but stating his terms and conditions
were to remain otherwise unchanged.
In 2012 Neilly resigned and told Patsystems that he was joining
a competitor firm. They claimed that he was bound by the
restrictive covenant in his original contract and therefore was
found to be in breach of contract. They dismissed him.
Patsystems applied to the High Court for an injunction against
Neilly, seeking to enforce the restrictive covenant.
