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16 October 2012
Employment Appeal Tribunal (EAT)
A variation to a contract, including the introduction of restrictive covenants, may be treated as binding if the employee has taken the benefits of the variation, even if he or she has not signed the varied contract.
L was sent a new contract which contained restrictive covenants preventing him from competing with his former employers and soliciting certain customers for a period of 6-months. He was treated as having accepted the new contract, including the restrictive covenants, because he applied for and received pension and medical benefits which were referred to for the first time in the new contract.
The status of employment rights on the transfer of an undertaking is an extremely complex area of...