Senior executives and managers frequently have provisions in their contracts of employment or participate in company schemes which impose restrictions setting out what they cannot do upon the termination of employment. These provisions are commonly referred to as Post Termination Restrictive Covenants. They impose restrictions on the outgoing employee's ability to contact clients, deal with clients, contact other employees and/or prevent the outgoing employee from working for a competitor or group of competitors.
In addition, senior executives and managers frequently participate in bonus, profit share or other incentive schemes which reward them either based on the company's performance, their performance or a combination of the two. It is common practice for entitlement to payment under the schemes to be dependent on the employee remaining in employment at the date of actual payment.
Disputes regularly occur between employers and employees about the enforceability of covenants and entitlements to payment of bonuses. Typical disputes often include allegations of breaches of fiduciary duties, duties of fidelity and loyalty and of duties of confidentiality.
We represent clients from a diverse range of backgrounds including those operating in the financial markets, insurance markets, retail and other consumer markets. Our clients range from major national and international Plc's, private limited companies and partnerships to senior executives and managers working in these environments.
Why come to us:
1. Contract and covenant claims
We are regularly instructed by employers and employees to advise in connection with claims for breach of post termination restrictive covenants, breach of duties of fidelity, loyalty and confidentiality and for breach of fiduciary duties. We appear in all Courts in England and Wales and are regularly involved in obtaining and opposing injunctive relief to prevent breaches continuing. We are also well versed in obtaining and opposing the grant of other forms of protective relief including freezing orders and search and seizure orders
2. Bonus claims
We are regularly instructed by employers and employees to advise them in connection with claims for breach of contract in which the central element of the claim is the non-payment of a bonus.
How we can help:
We provide a commercial approach to contract, covenant and bonus claims. We are often instructed from an early stage, well before court proceedings are issued. We can provide preliminary advice in relation to the enforceability or otherwise of contractual provisions and help clients in relation to investigatory and disciplinary steps. We possess the knowledge and capability to act quickly in circumstances where protective action is necessary. Due to our experience, we are aware of the issues which most commonly come into play in dealing with claims in most industry sectors. We have well established links with specialist counsel and forensic experts whose services are commonly deployed in relation to these claims.
Who to contact:
Chris Syder (Head of Employment)
020 7293 4620
csyder@dac.co.uk
Jonathan Brogden
020 7293 4540
jbrogden@dac.co.uk
Stephen Robinson (Manchester)
0161 955 3864
srobinson@dac.co.uk
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