Doing A Deal – Introducing Enforceable Post-Termination Restrictions

Post-termination restrictions introduced after an employee has started work were generally thought to be enforceable only where the employee is given a tangible benefit (e.g. a pay rise) in return. The High Court's decision last week in Pickwell & Nicholls v Pro Cam CP Ltd, however, has cast this into doubt.

The judgment appears to suggest that introducing an employee to clients, and thereby providing them with the opportunity to develop their profile in the market, could be a sufficient benefit – meaning that a restriction which is otherwise reasonable in its scope, would be enforceable.

However, the decision runs counter to generally accepted notions (which were apparently confirmed by the High Court in Re-Use Collections Ltd v Sendall in 2014); whilst it gives hope to employers who are looking to enforce restrictions which were introduced without obvious benefits in return, the decision should not be relied upon when planning the introduction of new restrictions.