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