Sector Focus


Legal


Sponsored by: Sydney Mitchell LLP


Are Restrictive Covenants in unsigned Employment Contracts worthless?


Emma-Louise Hewitt (pictured), Head of Employment Law at Sydney Mitchell warns that unsigned contracts of employment may not be worth the paper they are written on if you want to enforce restrictive covenants according to the High Court. The company claimed that a


senior employee had breached the restrictive covenants in her contract which, amongst other things, prevented her from working for competitors for a specific period after her termination date. But, the company were unable to locate at least one single signed copy of a contract of employment with its former operations director after she resigned to allegedly, join competitors. When refusing to grant the


company a pre-trial injunction against her, the Court noted that, despite being a major employer with an extensive HR department, it had failed to find a signed copy of the three contracts the employee was said to have entered into. The inference being that she had refused to sign the contracts which imposed increasingly onerous restrictive covenants on her as she climbed the seniority ladder without any consideration offered in exchange. The lack of evidence showed


that no valuable consideration was given to her in exchange for her agreement to the purported restrictions on her post- termination conduct which was fatal to the company’s claim. The starting point with any


restrictive covenants is that any covenant which is a restraint of trade is accepted by the Court as being unenforceable, unless it is reasonable with reference to the interests of the parties concerned and of the public interest.


For help or advice on employment law matters, contact Emma-Louise Hewitt on 0808 166 8870 or email e.hewitt@sydneymitchell.co.uk


Sydney Mitchell LLP is a Top Tier Legal 500 firm with offices in Birmingham, Sheldon, Shirley and facilities in Sutton Coldfield.


58 CHAMBERLINK November 2018


Ignore Brexit boredom and get your contracts in order


A Midlands lawyer has urged businesses to review their current arrangements as Brexit boredom threatens the future viability of contracts. Angela Kerry, associate solicitor


at Birmingham-based Emms Gilmore Liberson (EGL), has advised business leaders to guard against contractual complacency by taking steps to ensure that their terms are fit for purpose post- Brexit. With less than 200 days to go


until Britain leaves the European Union, Brexit continues to dominate the daily news agenda, creating what some believe is a potentially harmful combination of confusion and apathy that could lead to future contract catastrophe. Angela said: “There is a genuine


risk that Bexit boredom has set in and that could be an extremely dangerous mindset for any business. Business leaders urgently need to consider whether any contract they deal with will survive what happens in a post-Brexit world – and that covers everything from T&Cs and employment contracts to shareholder agreements. “The details of our departure


from the EU will have a significant bearing on the interpretation of


and whether their obligations can continue to be enforceable. “What can business do to


safeguard against these threats? I would strongly encourage all businesses to conduct a health- check and audit to review their current arrangements – particularly with third parties – and consider how Brexit may affect them.” As the government continues to


negotiate the terms of Britain’s exit from the EU, calls for a second Brexit referendum and fears of a no-deal scenario remain. While the UK is not due to leave


Angela Kerry: Brexit means boredom


‘There is a genuine risk that Bexit boredom has set in and that could be an extremely dangerous mindset for any business’


contractual terms and perhaps even the enforceability of judgements. There will also be questions surrounding the commercial viability of contracts


the EU until March 2019 and most EU legislation will continue to apply until 31 December 2020 – the so-called ‘transition period’ – it is thought that a no-deal situation would not provide enough adjustment time to allow for changes in laws or negotiation for trading deals. Angela said: “It is wise to be


prepared for the worst case scenario and that could well be a ‘hard’ Brexit or even a no-deal. “Short-term contracts may be


the answer until post-Brexit certainty is achieved or the inclusion of flexibility within contracts to allow parties to review and update as the consequences become clear.”


Firm advises on university growth


New appointment boost for legal team


Law firm The Wilkes Partnership, which has offices in Solihull and Birmingham, has expanded its European legal team by appointing corporate and commercial lawyer to boost its growing German client base. The new arrival is Anton Fischer (pictured), who has extensive experience


acting on cross-border transactions, has previously worked in a number of locations, including the UK, Vienna, Brussels, Leiden and Singapore. In his new role, he will help The Wilkes Partnership’s dealings within the


German market, alongside launching a new initiative focused on Austrian businesses. He said: “As a leading independent UK law firm, The Wilkes Partnership


offers its clients a high level of service in a hands-on way. “Being able to deliver a wide range of legal services immediately


attracted me to the firm. I am excited to work with existing clients on their cross border matters and to open up our full range of expert services within Europe and beyond.”


Mills & Reeve has advised a university on acquisitions in the Eastside area of Birmingham, which promise further regeneration for the city. The law firm worked with Birmingham City University to acquire four plots of land in Eastside, having previously advised them on the relocation of the Royal Birmingham Conservatoire to a £57m purpose built facility at Millennium Point. One of the acquisitions is for


phase two of BCU’s STEAMhouse project, a £60m scheme which will create up to 10,000 jobs across the West Midlands and provide new facilities for academics, artists and businesses in the heart of the city. Long-term plans for the


remaining three plots will be developed by the university in due course. The multi-disciplinary team at


Mills & Reeve worked on behalf of BCU to acquire all plots of land, involving real estate, construction and tax advice.


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