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Chapter EIM03620

Document Cited in Related
Vincent
Published date22 May 2014
Record NumberEIM03620
Section 225 ITEPA 2003 Example 1a

The following restrictions are set out in a contract of employment:

The employee shall not:

  • work within a 20 mile radius of the company premises
  • contact any customer or supplier of the employer.

Both restrictions apply for a period of 18 months after cessation of employment.

The employee was required to agree to the restrictions as conditions of the employment. No payment was made to the employee for agreeing to the conditions during the course of the employment.

The following line was included in a letter of termination:

“I confirm that the conditions set out in the contract of employment continue to apply for 18 months following the date of this letter.”

Comment

Section 225 does not apply as no consideration has been paid for giving the restrictive undertakings. No new undertakings were included in the termination...

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