Can an employee be bound by post termination restrictions contained within an unsigned version of a contract of employment?
Yes, says the High Court (Chancery Division) in FW Farnsworth Limited v Lacy, if the terms of that contract have been impliedly accepted by the employee.
The employee had signed and returned a contract sent to him early in his employment with the company, but not a later contract, sent to him following a promotion some years later. The later contract included post-termination restrictive covenants, and a number of elective employee benefits. The Court held that the employee’s act of applying for private medical insurance, after having read the later contract, and without any protest or reservation, was an unequivocal act referable only to his having accepted all of the terms of the later contract, including the restrictive covenants.
Paul Burton, Employment Solicitor, says “Get in touch if you need more information on this topic.
For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
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