Employment Notes

Employment 1) Provisions which will be covered in the contract 1) Whether a party who ceases to be a director, will still be employed 2) The amount of notice to be given by the company / the director 3) Whether payment can be made in lieu of notice (PILON) * If contract terminated and PILON made, the contract has not been breached, this is a term of the contract 4) Whether there is a gardening leave clause * The employer can request that the employee stays at home during the notice period * The employee is still employed and therefore cannot work for a competitor 2) Considerations for restrictive covenants 1) Restrictive covenants are prima facie void 2) Courts do however allow a certain amount of protection for employers if they go no further than is reasonably necessary to protect the legitimate business interests of the employer including: a) Client connections b) Stable workforce c) Confidential information 3) Will only be enforceable if the employer has not breached the contract * E.g. If there is no PILON clause and employer refuses to give notice, he will have breached the contract and the restrictive covenants will be unenforceable 

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