Penningtons Manches

UK 200 2014 position: 60

Restrictive covenants: should they be affirmed on termination?

A common refrain these days is the rather blasé ‘covenants aren’t enforceable’. Not so. Covenants naturally come to the fore on termination and it is worth knowing that employers can benefit from getting employees to affirm existing restrictive covenants when they leave employment.

A recent case indicates that by getting the employee to affirm their employment contract covenants when they leave under a settlement agreement, the employee will then have the burden in court of establishing why the covenants should not be enforceable. This is a significant improvement for employers, where the usual position is that in enforcement proceedings they have to prove why covenants should not be unenforceable.

In Capgemini India Private Ltd and another v Krishnan and others, former employees of Capgemini were asked to reaffirm their non-competition restrictive covenants in an undertaking on termination. The employees then sought to withdraw the undertaking when it became clear that a competitor would be willing to cover any legal costs incurred as a consequence of breach…

Click on the link below to read the rest of the Pennington Manches briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.


Abacus House
33 Gutter Lane

Turnover (£m): 46.60
No. of lawyers: 252