New Case Law on the Use of Restrictive Covenants

Levinwick Limited v Patrick Hollingsworth 4 July 2014

Restrictive covenants in contracts of employment are intended to operate as a security for employers who wish to protect their commercial interests. The intention is often to seek to prevent departing employees using inside information or soliciting clients or existing employees. In order to be enforceable, restrictive covenants must be carefully drafted in a reasonable and proportionate manner. This point was highlighted recently in the High Court case of Levinwick Limited v Patrick Hollingsworth.


Facts of the case

In this case, a pharmacy sought to enforce the terms of a former employee’s contract of employment. The contract stipulated