The Work Couch
The Work Couch
RPC
Business protection (Part 1): When a senior executive leaves
34 minutes Posted May 17, 2023 at 9:03 am.
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Welcome to The Work Couch, RPC's recently launched podcast that covers everything employment.


Following last week's announcement by the government of its plans to limit the extent of non-compete post-termination restrictions, we take a look at the proposals as well as how the current law protects businesses when a senior executive leaves.

 

Patrick Brodie, partner and head of RPC's employment, equality and engagement team, explains how restrictive covenants work in practice, including:

 

  • An overview of the restraint of trade doctrine and how the approach by UK courts has evolved over time;
  • Whether restrictive covenants should still exist in today's economy;
  • How other countries approach restraints of trade;
  • The various types of post-termination restriction and how they operate;
  • How long restrictive covenants can remain effective;
  • Enforceability and associated tactics;
  • "Blue pencilling", which refers to the deletion of words to make a restriction enforceable, and the Supreme Court's ground-breaking decision in Tillman v Egon Zehnder; and
  • How to manage the departure of a senior executive, where there is a potential breach of a post-termination restriction.

 

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All information is correct at the time of recording. The Work Couch is not a substitute for legal advice. Opinions expressed by the speakers are their own and do not necessarily represent the views or opinions of RPC.



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