UK Courts Narrow Post-Termination Curbs as Data Act 2025 Adds Employer Complaint Duty
Updated
Updated · macfarlanes.com · Jul 29
UK Courts Narrow Post-Termination Curbs as Data Act 2025 Adds Employer Complaint Duty
2 articles · Updated · macfarlanes.com · Jul 29
Summary
Three recent UK rulings signaled tighter scrutiny of post-termination restrictions, with courts blocking a group company’s enforcement claim, striking down a training clawback and rejecting a 6-month non-compete.
In the training case, the Court of Appeal held an £8,000 repayment demand on an employee earning about £18,000 was an unreasonable restraint of trade because it acted as a punitive disincentive to leave.
A separate ruling found group companies could not enforce restrictions against a financial adviser deemed a "worker," and unclear drafting also defeated an argument that the covenant was held on trust for them.
Another case said poor drafting doomed a 6-month non-compete and the employer’s bid to force deletion of former clients from an ex-employee’s LinkedIn network.
Separately, the Data (Use and Access) Act 2025 is now in force, requiring employers to provide a simple complaint mechanism for data subjects and handle complaints without undue delay.