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Court finds employees don’t have to disclose intention to compete

09 June 2017 #Employment


In MPT Ltd v Peel and others, the High Court was asked to grant an interim injunction against two senior employees of MPT who planned to run a competing business after they left MPT and their restrictive covenants had expired. 

MPT questioned the pair on their intentions but they did not disclose their plans.  MPT argued that the employees had breached their duty to answer questions truthfully.  The Judge, however, did not agree that the defendants were under a contractual duty to disclose their intentions. 

This case highlights the freedom that employees have in this regard, however, its worth bearing in mind that the position may have been different if the employees had been directors and owed fiduciary duties to MPT.   

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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Louise Merrell

Louise Merrell
Associate

E: lmerrell@clarkslegal.com
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