This is an extract of our Employment document, which we sell as part of our Business Law and Practice Notes collection written by the top tier of Cambridge And Oxilp And College Of Law students.
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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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