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ARTICLE · 11 MARCH 2015

Post Termination Restrictions: Always Consider Consideration

The recent case of Re-Use Collections Ltd v Sendall [2014] EWHC 3852 (QB) is a timely reminder to employers everywhere of the importance of providing meaningful consideration...

United KingdomEmployment and HR

The recent case of Re-Use Collections Ltd v Sendall [2014] EWHC 3852 (QB) is a timely reminder to employers everywhere of the importance of providing meaningful consideration when attempting to tie-up existing employees with new post-termination restrictions.

If you don't, the risk is that no matter how well drafted your restrictions are, they will be worthless when you come to enforce them, allowing your – by now – ex-employee to walk away scot free to compete with you, pinch your staff and cajole your customers away.

The facts

Mr Sendall had worked for Re-Use Collections for a number of years with a basic written statement of employment particulars in place (despite his seniority and importance to the business). Eventually Mr Sendall was asked to sign a new contract which contained a number of post-termination restrictions (including a non-compete, non-solicitation of clients and employees, non-dealing with clients and a ban on setting up a competing

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