Dismissal for refusing to sign a restrictive covenant

Refusing to sign a restrictive covenant can be a fair reason for dismissal, so long as the employer is genuinely attempting to protect the interests of the business. The tribunal must consider all the circumstances, for example, whether restrictions are reasonable, and whether other staff signed up to them. For more information about restrictive covenants see page 47. In its policy paper Smarter Regulation to Grow the Economy in 2023 the government announced that it plans to limit the use of non-compete clauses to three months.