Can I build on land with a restrictive covenant?
Can it really stop me building or developing on my own land? Yes, it can. Even though planning permission has been granted, it does not override any restrictive covenants. The two are not mutually exclusive, they are entirely independent of one another.
Are restrictive employment covenants enforceable?
How enforceable are restrictive covenants? The general position is that post-termination restrictive covenants are void on public policy grounds as being in restraint of trade, unless they are being used by the employer to protect a legitimate business interest.
Can I get out of a restrictive covenant?
If a restrictive covenant is already in your employment contract, you can seek your employer’s consent to have it removed. Depending on the reason, they could refuse this request or it may be removed by an Employment Tribunal if they determine it is unreasonable.
What is a reasonable restriction in a restrictive covenant?
A reasonable restriction in a restrictive covenant is one that goes no further than is necessary to protect the legitimate interests of one party to the business agreement. The restriction must be reasonable in terms of:
Can a worldwide restrictive covenant be made void?
However, if you have clients across the globe, a worldwide restriction may be your only option. In cases where the restrictions are too unreasonable, the employee could bring a claim against you and the restrictive covenant made void. If you introduce one when their employment begins, you must gain their consent for it to come into force.
How are restrictive covenants in Employment Law, Scotland?
The law is slightly more protective of employees. As a general rule the courts will enforce restrictive covenants so long as they are necessary for the legitimate protection of the employer’s business. A restrictive covenant which goes beyond what is necessary for the legitimate protection of an employer’s business will not be enforceable.
How are geographical restrictions upheld in the courts?
The courts will uphold geographical restrictions, so long as it is reasonable to do so. For example, a restrictive covenant in a butcher’s employment contract which prevents that butcher from being employed as a butcher anywhere in Edinburgh would probably not be regarded as reasonable.
Can a non-compete covenant be a geographic restriction?
Here, despite the non-compete not having a geographic restriction, the covenant only restricted the contractor from engaging in post-termination competitive activities with those customers with whom he had dealt. In Judge Ray’s view, this was a reasonable restriction and “the lack of a geographic area restriction is of no consequence.”
When is a restrictive covenant not enforceable by the court?
Restrictive covenants will not be enforceable if they are not clearly drafted or are not reasonable at the time the parties entered into the covenants.
Can a restrictive covenant be imposed on a casual employee?
Most case law focuses on the employer/employee relationship, but restrictive covenants can apply to other types of employment relationship. Can restrictive covenants be applied? It would not normally be appropriate to impose conventional post-termination restrictive covenants on a casual worker (for example in a zero hours contract).
Can a restrictive covenant be binding against a self employed consultant?
Provided that the usual rules relating to restrictive covenants are met, restrictive covenants could be binding against self-employed consultants, but there is less case law on this.