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Publication
Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Global | Publication | August 2017
Countries across Europe have differing requirements relating to the validity of non-competition agreements between employers and employees following the termination of an employment contract. We provide a brief comparative analysis of the requirements in Italy, Germany, France, Poland, the Netherlands and the UK. Please get in touch with your local Norton Rose Fulbright contact or any of the contributors to this publication to learn more about this topic.
We have considered the general requirements for the enforceability of a non-compete restriction as a matter of UK employment law. Please note that the starting point for any post-termination restrictive covenants under English law is that they are void as an unlawful restraint of trade as a matter of public policy. The English courts have, however, recognised the enforceability of such restrictions and the general rule is that they will typically be enforceable so long as they do not go further than is reasonably necessary in order to protect a legitimate interest. A bare non-compete restriction is the most onerous type of post-termination restrictive covenant. It will only be enforceable where a non-dealing or non-solicitation clause does not work to protect the relevant interest. This would be the case, for example, where it is not customer connection that is the issue but confidential information. Please also note that it can never be guaranteed that a particular restriction will be enforceable as this will be a decision for a court asked to determine such an issue. Arguably, the best protection an employer may have is the use of a contractual garden leave clause which would prevent the employee from competing during the employee’s notice period although not all contracts of employment contain such clauses.
Publication
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
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