No Stick Without a Carrot: UK Court Refuses to Enforce Post-Employment Restrictive Covenants

The recent decision of the High Court in Re-use Collections Limited v. Sendall & May Glass Recycling Ltd. serves as a useful reminder for employers: restrictive covenants introduced during the employment relationship (rather than at the point of hiring) require specific consideration if they are to be enforceable. Under UK law, changes to employment terms require consideration if they are to be relied on. The fact the employee keeps their job does not amount to consideration, unless the employee would genuinely have been dismissed if they did not agree. UK law would only rarely justify termination for failure to agree new post-termination restrictions.

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