Refusal to sign a restrictive covenant

Refusing to sign a restrictive covenant can give rise to a potentially fair dismissal for SOSR, so long as the employer’s aim is genuinely to protect the interests of the business.

In deciding whether dismissal was reasonable in the circumstances, the tribunal must consider factors such as, for example, whether restrictions are reasonable, and whether other staff signed up to them.

In its policy paper Smarter Regulation to Grow the Economy the government has announced that it plans to limit the use of non-compete clauses to three months.