£17k unfair dismissal award following “blackmail” to sign restrictive covenant

Financial advisor wins £17,199 unfair dismissal award after being “blackmailed” to sign a restrictive covenant agreement.

In a recent ruling, a Nottingham Employment Tribunal has found that Peter Ward was constructively and unfairly dismissed by Fiducia Comprehensive Financial Planning. The Tribunal heard that Mr Ward had been regarded as a valuable employee during the 9 years he had worked for Fiducia.

When a director learned he was going to work for a competitor, he tried to extend a restricted covenant from 12 to 24 months.

Judge Ahmed ruled that the director’s actions and behaviour constituted bullying and intimidation and further found that Fiducia made “false and spurious allegations” against Mr Ward to pressure him into signing.

We advise caution when drafting restrictive covenants. To be enforceable they should go no further than is reasonably necessary for the employer to protect their legitimate business interests and not impinge on an employee’s ability to ply their trade.

View the Mr P Ward v Fiducia Comprehensive Financial Planning Ltd Employment Tribunal document: https://bit.ly/2pcjwj5

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