Intention to Complete

Shiva Shadi, Partner and Head of Employment at Davis Blank Furniss

The Chancery Division has held in MPT Group v Peel that two relatively senior employees did not have to reveal their intentions that they intended to set up in competition with their employer after their restrictive covenants had expired.  When the two individuals had been questioned on this by their employer, they had lied about their intentions.  The employer therefore sought an injunction against the two employees which included a duty to answer questions truthfully.

The Judge stated that he was “reluctant to hold” that a departing employee is under a contractual obligation to set out his or her own confidential plans, when setting up in lawful competition with an existing employer.

The outcome could be different if, for example, the two employees were more senior such as to hold for example fiduciary duties etc.

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