Protecting Your Business: A Guide to Non-Compete Clauses and Restrictive Covenants

An employee builds up valuable knowledge and contacts during the time that they work for you, but your commercial interests may be vulnerable if they leave and go on to work for a competitor. It is therefore prudent to take steps to protect confidential information, such as pricing strategies, bids, or cutting-edge research, and to guard relationships with clients or suppliers that could be exploited to another business’s advantage. At the start of employment, employers often include restrictions, known as restrictive covenants, on what an employee can do with information and contacts gained during their employment. However, even if a former employee could damage your business, there are limits on the restrictions that can be placed on them and how far you can prevent them from competing with you. What are non-compete clauses? Non-compete clauses are…

A time of change: the Employment Rights Bill and the Autumn Budget

By the end of 2026, employment rights are expected to be considerably different to those in force today. Although much of the detail will be the subject of consultation which then needs to be pinned down in regulations or codes of practice, the publication of the Employment Rights Bill in October 2024 indicates the big changes that are on the horizon. Protection from unfair dismissal, family-friendly rights, guaranteed hours for vulnerable workers, and protection from harassment, are all areas that will see new rights or an expansion of existing rights. The Government policy paper ‘Next steps to making work pay,’ mentions further future reforms and areas for consultation. The main points in the Bill, and the changes to employer’s national insurance contributions which were announced at the autumn budget are below. The Bill also includes provisions…

Managing Employees Arrested for Off-Duty Conduct: When crime doesn’t pay.

When an employee is arrested for a crime committed outside of their employment, employers face the challenge of managing the situation while balancing fairness to the employee, protecting the business’s interests, and complying with English employment law. In this article I outline the steps employers should take when dealing with an employee arrested but not yet charged, how and when they may cooperate with the police, and the appropriate disciplinary procedures if the employee is subsequently charged and convicted. Initial Steps upon Arrest 1. Gather Information Confirm Facts: Verify the arrest through reliable sources, such as police reports or direct communication with the employee. Avoid acting on hearsay or rumours. Understand the Allegations: Determine the nature of the alleged crime, its severity, and any potential impact on the employee's role. 2. Assess Impact on Employment…

Departing employees and non-compete clauses; an employer’s guide

An employee builds up valuable knowledge and contacts during the time that they work for you, but your commercial interests may be vulnerable if they leave and go on to work for a competitor. It is therefore prudent to take steps to protect confidential information, such as pricing strategies, bids, or cutting-edge research, and to guard relationships with clients or suppliers that could be exploited to another business’s advantage. ‘At the start of employment, employers often include restrictions, known as restrictive covenants, on what an employee can do with information and contacts gained during their employment,’ says Kalpesh Nakeshree, Head of Employment with Ware & Kay incorporating Pearsons & Ward. ‘However, even if a former employee could damage your business, there are limits on the restrictions that can be placed on them and how far you…

Attention Business Owners and Employees! Expert legal Advice with the New Allocation of Tips Law

Starting October 1st 2024, the new Allocation of Tips Law will come into effect, revolutionising the way tips are distributed in the workplace. This law ensures a fairer, more transparent system for all employees, guaranteeing that tips are shared equitably amongst all staff members. This is a significant step towards promoting fairness and morale within your team. Where to seek advice: Ensure your business is ready for this change! You will need a tips policy and an adequate record keeping method stretching back 3 years. For a complementary template tips policy, book a consultation with me, today. Kalpesh Nakeshree, Head of Employment. I am here to guide you through the process and ensure smooth adherence to the new regulations. Key Highlights of the Law: Transparency- Employers are required to clearly document and communicate the…

Do you have a policy for keeping in touch during family leave?

Returning to work from family leave can be a significant adjustment for some employees. As well as the practical considerations of childcare and family logistics, there may have been significant changes in the workplace, such as new colleagues, new technology or new products and services. If used properly, keeping-in-touch (KIT) days can help an employee to feel included and can support their transition back to work. ‘Employees and employers can agree that an employee participates in up to ten KIT days during their family leave,’ explains Kalpesh Nakeshree, Head of Employment with Ware & Kay incorporating Pearsons & Ward in York, Wetherby & Malton. ‘However, you should not be tempted to use KIT days to force an employee to work during their family leave, as these arrangements are entirely voluntary.’ Kalpesh explains what KIT days…

Reform of holiday rights: what employers need to know

Calculating holiday allowances can be tricky for any staff who work irregular hours. In an effort to simplify things, this year the government has introduced changes to the rules on holiday rights as part of reforms to some employment rights that developed from years of European and UK case law. ‘These changes were made following consultation, with the stated aim of simplifying the rules on holiday entitlement and pay,’ says Kalpesh Nakeshree, Head of Employment with Ware & Kay incorporating Pearsons & Ward. ‘They also address the potential unfairness of a Supreme Court decision that gave a term-time worker more holiday when compared to a someone who worked all year round for the same number of hours each year.’ Kalpesh highlights the changes and the importance of complying with the new rules, as well as…

An overview of Flexible Working Arrangements

Flexible working refers to arrangements that allow employees to have greater control over when, where, and how they work. This can include options such as flexitime, remote working, compressed workweeks, job sharing, and part-time work. The aim of flexible working is to support employees in achieving a better work-life balance, increase job satisfaction, and improve productivity. In the case of Wilson v Financial Conduct Authority an employment tribunal considered an employer's rejection of a flexible working request to work entirely from home. The employer's policy was that employees should work in the office 40% of the time.  Currently, an employer must notify an employee of their decision, including the decision on any appeal, within three months from the date of the employee's request (or a longer period if the parties agree). From April 2024, this decision…

Promotions and grading; an employer’s guide to the risks

Giving employees clear pathways and opportunities for promotion and increasing pay grades will help to improve performance and keep staff motivated and committed to your organisation. ‘These, along with fair and consistent practice, should reduce the risks of discrimination and an equal pay claim when promoting staff and rewarding employees with increased pay grades,’ says Kalpesh Nakeshree, Head of Employment with Ware & Kay incorporating Pearsons & Ward. Kalpesh warns that legal risks may arise in promotions and increasing grading and he highlights ways to address these. Discrimination risks Unlike most claims for unfair dismissal, employees do not need two years’ service to bring a discrimination claim. Where conscious or unconscious bias is at play in deciding who to promote, employers may be at risk of a claim for direct discrimination. For example, if the…

Employee, worker or self-employed – are you clear on the difference in status?   

The size of the workforce on your farm is likely to increase and decrease across the seasons, for example when the workload increases for lambing or harvest. Nowadays there is all manner of flexible solutions, but it is important that farmers take care to ensure they are clear about the employment status of each person who works on the farm. HMRC and employment tribunals are red-hot on ensuring that a worker’s employment status is correctly categorised and they will look beyond any contract to see what happens in practice. ‘It is up to you to ensure that you categorise and treat people consistently, so it pays to be au fait with the different worker classifications,’ says Kalpesh Nakeshree, Head of Employment at Ware & Kay and Pearsons & Ward Solicitors in Malton (part of Ware…