Do You Dare Enforce Post-Termination Restrictive Covenants?

The High Court has refused to grant injunctive relief for the enforcement of a non-compete clause in circumstances where a senior trader had been on sickness absence and away from the business during their 12-month notice period.

The case serves as a helpful reminder of the approach the court will take when looking at post-termination restrictive covenants (PTRs) and, in particular, how it deals with their enforcement in circumstances where an employee has had significant periods of absence from the business.

Background

In the case of Dare International Ltd v (1) Stephen Soliman (2) Ashley Hikmet, Dare International Ltd (Dare) claimed damages for breach of contract and fiduciary duty, and sought injunctive relief to enforce PTRs against two former employees, Stephen Soliman (SS) and Ashley Hikmet (AH). The defendants, who were Senior Traders at Dare, had accepted employment with a rival firm, Onyx Capital Management Limited (Onyx) in their Dubai office.