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Restrictive covenants: proposed legislation ditched

Posted on 12 April 2018

Restrictive covenants: proposed legislation ditched

Government plans to legislate on restrictive covenants have been quietly dropped, bringing it in line with ELA thinking that such intervention is unnecessary. As the recent case of Dyson demonstrates, well-drafted covenants have an enduring value.

In May 2016 the Government published a call for evidence on restrictive covenants. The proposal was one of a raft of measures that the Government said would promote innovation and flexibility within the labour market through the National Innovation Plan.

Nothing further was heard about the proposal until 7 February 2018, when the Government published its response to the Taylor Review, ‘Good work: a response to the Taylor Review of modern working practices’. Eagle-eyed readers of that paper will have found that the Government’s response to the call for evidence on restrictive covenants unexpectedly appears on page 58.

Read the full article here.

This article was co-authored by Paul Goulding QC, Blackstone Chambers and Jennifer Millins, Mishcon de Reya

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