Law for Business Managers (LAW011-1) - Restrictive Covenant Analysis

This assignment solution addresses a scenario involving a restrictive covenant in an employment contract. The case involves an employee, Cristine, who is restricted from working in the soft beverage industry for seven years following her employment at Super Fizz Ltd. The analysis focuses on the legality of this clause under UK employment law, specifically referencing the Employment Rights Act 1996. The solution examines the concept of restrictive covenants, the importance of reasonableness in such clauses, and the factors courts consider when assessing their validity. The analysis concludes that the restriction on Cristine is lawful, as it is a term of the employment contract and does not violate the Employment Rights Act. The assignment highlights the balance between protecting an employer's legitimate interests and an employee's right to work.

PART 2
FACTS :
Cristine is working as an employee at a company which produces soft beverages named
Super Fizz Ltd. She has got the knowledge about the secret involving the process of the
manufacture of their most popular beverage Super Cola and she has been obliges by the contract
that she can not be involved in the manufacture of fizzy drinks or any other soft beverages for 7
years in UK or anywhere else.
ISSUE :
Is the clause in the contract lawful and what is the name of the contractual clause ?
OBERVATION :
The restriction can take place in the contract of the work which has a discretion for avoiding
employees from taking the specific clients with them to the other competitive business when their
job has been ended with the company though the court do not support this clause as it would disrupt
the competition among the businesses. If employer wants to enforce the restrictive covenants it is
necessary to safeguard the concern which has legitimate interest and the clause in the contract is
reasonable enough and reasonableness has been depended on many elements but assessed in 3 ways
majorly which is duration of the clause , limiting the geographical area and specific activities of the
duty to be restricted. That reasonableness clause shall get attested at the time when the employee
enter into the employment agreement and the breach or misconduct of the contract would terminate
the employee. It doesn't pay the notice although finds out the dismissal must not be for gross
misconduct and the employee has committed gross misconduct for which the dismissal is needed ,
the employer would be able to implement the restrictive clause of the contract.
The relationship between the employee and the employer has been explained clearly in the
employment law and there are certain rules and regulations which the employee's have to follow as
per the employment rights act , 1996. Employer usually exploits the rights of the employee so this
law protects the rights of the employee from such situations.

DECISION :
The issue that has been mentioned is the case of restrictive covenant where Cristine has been
got restricted for working in making the drinks for 7 years which would lead this in having the
downfall in the competition in this market area but the restriction that has been put on Cristine is
lawful as per the Employment law UK as it is written in the terms and conditions of the contract
where the clause restricts the employee for doing the same skills elsewhere and earning from it.
Eventually the employee and employer has to make a contract in the beginning of making the
contract which would be suitable for both of them. There are several different laws which restricts
the employee for doing certain work and if they do so they would be terminated from the work.
Therefore , as per this situation the restriction that has been on Cristine is lawful as per the law of
Employment Rights Act , 1996.