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ICAEW BL · Chapter 12 · Question 7 of 12

A junior bookkeeper's contract says that for five years after leaving she must not work for any accountancy business anywhere in the UK. She leaves and joins a firm in a different city. Will the restriction be enforced?

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Reveal answer & explanation

Correct answer: C) Probably not, because it goes further than is reasonably necessary to protect any legitimate interest of the employer

Explanation

Restrictive covenants are void as restraints of trade unless they protect a legitimate interest, such as trade connections or confidential information, and are reasonable in duration, geographical area and scope. A UK-wide, five-year ban on a junior employee working for any accountancy business is likely to be unreasonable. Covenants are presumed void, not valid, and courts generally do not rewrite an unreasonable covenant to make it enforceable.

All 12 questions in Chapter 12Employment law and data protection MCQs with answers

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