At the forefront of Sherrards’ Immigration and Global Mobility practice is Nelli Shevchenko, a Senior Associate based in the London office, whose strategic advice is helping businesses worldwide navigate the complex world of international mobility with clarity, confidence, and compliance.

A Decade of Specialist Expertise

With over ten years of experience in UK immigration law, Nelli has advised a diverse range of clients – from large multinational corporations and US law firms to individual entrepreneurs and creative professionals. Before joining Sherrards, she headed the UK corporate immigration department of a US law firm, bringing a sharp transatlantic perspective to her practice.

At Sherrards, Nelli plays a pivotal role in the Employment and Immigration team, offering businesses, family offices and individuals immigration advice. She provides hands-on support for Skilled Worker visas, Global Business Mobility visas, sponsor licence applications, and UK right-to-work compliance. Following Brexit, Nelli has also been supporting businesses on their EU–UK operations, advising on the movement of personnel across borders and helping companies adapt to the new regulatory landscape. Her private practice areas include complex family or British nationality matters. She is also renowned for her work on Global Talent visa applications for leaders in digital technology, and the arts and sciences. 

When to Contact Sherrards’ Immigration Practice

The Sherrards Immigration team provides comprehensive UK immigration advice tailored to both businesses and individuals. Clients typically reach out to the team in the following scenarios:

• Hiring foreign nationals or relocating existing employees
• Senior executive or leadership assignments
• Relocating to the UK for family or personal reasons
• Starting or expanding a business presence in the UK
• Investing in UK businesses or entrepreneurship pathways
• Sending children to the UK for education, from school through to university
• Navigating complex right to stay, settlement or British nationality applications, including discretionary and historic entitlement claims

No matter the size or scope of the requirement, Sherrards offers proactive, strategic advice and practical solutions that allow clients to focus on their goals while remaining compliant with ever-changing immigration rules.

Leading Sherrards’ Global Mobility vision – Meet the Team

As the lead of Sherrards’ Global Mobility practice, Nelli has built strong relationships with immigration professionals across 87 countries. Her work focuses not only on supporting UK-bound talent but also on enabling businesses to expand and operate seamlessly across jurisdictions. From securing work permits to advising on business visitor visas and facilitating cross-border moves, Nelli and her team offer tailor, end-to-end immigration support.

Sherrards’ growing global network is especially active in the US and China, where firms’ international reach continues to expand. Through a dedicated China Desk, the firm supports businesses engaged with the Chinese market, providing region-specific immigration insight and compliance strategies that align with business goals and local regulations. Christine Wang is working alongside Nelli and provides dedicated support to Chinese clients.

Sherrards’ immigration practice is underpinned by a collaborative, client-focused team. Alongside Nelli, the team includes:

• Christine Wang, Solicitor, brings cross-cultural expertise and deep knowledge of UK immigration processes with a focus on Chinese speaking clients.
• Anna Gorna, Legal Executive, provides detailed legal support and operational insight.

From startups to multinational enterprises, Sherrards’ tailored service model ensures that clients remain agile, compliant, and future-ready.

Meet Nelli at the AILA Global Migration Forum

In June 2025, Nelli will be attending the American Immigration Lawyers Association (AILA) Global Migration Section (GMS) Annual Global Immigration Forum in Denver, Colorado. The event – hosted in the majestic setting of the Rocky Mountains – promises to be a key gathering of global immigration leaders exploring pressing issues in the world of international mobility.

If you’re attending the AILA GMS Forum or are in Denver, CA from 21–23 June 2025, reach out to Nelli to connect and share insights on the latest developments in global immigration. Whether you’re navigating new compliance rules, seeking to expand overseas, or simply want to exchange ideas with fellow practitioners, Nelli would be delighted to meet you.

📧 Email: ns@sherrards.com

🔗 LinkedIn: https://www.linkedin.com/in/nelli-shevchenko/

the need for properly carrying out right to work checks. Indeed, the latest data for 2025 show that enforcement this January was up by 73% compared with January 2024.

For a first offence, employers can face penalties of £45,000 per illegal worker. This amount can reach £60,000 per illegal worker for subsequent offences. Relevant individuals and company directors can also face criminal sanctions of up to five years imprisonment and/or an unlimited fine. And, beyond penalties, failing compliance can harm your company’s reputation and disrupt your operations.

The high level of fines can bankrupt smaller to mid-size businesses, so HR compliance becomes even more crucial.

In the second of our two-part series on UK immigration and employment compliance, we focus on getting right to work compliance right – and avoiding costly penalties and reputational damage

Who needs to do the right to work checks?

A common misunderstanding is that right to work checks only apply to employers hiring foreign nationals. This is incorrect. UK law requires all employers to conduct these checks for every employee, regardless of nationality, to prevent illegal employment.

Notably, since September 2024, the UKVI has been encouraging businesses to carry out right to work checks beyond directly employed staff and extending it to self-employed contractors (and any substitute workers) and agency workers. One of the strongest reasons to do this is to avoid reputational damage.

Businesses with a UKVI Sponsor Licence face more rigorous requirements and greater scrutiny from immigration authorities. If your business has such a licence, you must demonstrate meticulous compliance procedures and maintain detailed, accurate records to pass regular audits. Otherwise, you can lose your licence and put your sponsored population at risk.

Conducting the checks

You must complete right to work checks before an employee starts work.

These checks cannot be delayed until after an employee has started their first working day. If someone cannot immediately show proof of their UK right to work, they must not be allowed to begin work until they can produce the correct documentation.

Employers must follow simple three steps:

1. request original documents from the UKVI’s approved list in appropriate format
2. inspect these documents carefully, verify their authenticity, and ensure they match the individual’s identity
3. clearly record the date of the check and keep secure copies of these documents throughout employment and for two years after employment ends.

If a document or online verification shows the right to work is temporary, you must set reminders to perform follow-up checks before that expiry date. This helps maintain compliance and avoids penalties.

If your right to work check complies fully with current guidance and legislation, your business has a “statutory excuse”. This provides protection against penalties if an employee is later found to be working illegally, provided you’ve conducted proper follow-up checks as required.

Accurate and accessible record-keeping is vital. Your records should include copies of all relevant documentation, digital verification results, and clear notes on who carried out each check and when. Having a record of a right to work check can be decisive in an event of illegal working instance and help the business avoid penalties.

Identifying potential problems

If your company is involved in a transfer of staff under TUPE regulations, additional right to work checks might be necessary for the new employees.

If the company uses an Identity Service Provider (IDSP) for their checks, they must remember that this does not discharge their duties from record keeping and identity check. Moreover, an IDSP can be expressly used for right to work checks of British or Irish citizens with a valid passport only. It is not possible to establish a statutory excuse against liability for a civil penalty if the check via manual document-based check or online service was done by an IDSP. The company must ensure they are doing those checks and also checking the IDPS results, or they can be liable for a penalty.

If you discover an employee no longer holds the right to work in the UK, you are usually required by law to stop employing them immediately. Although this protects you from unfair dismissal claims, such dismissals must be carefully managed according to employment law. You should seek professional advice to avoid discrimination claims and ensure legal compliance.

In case of any doubt regarding an individual’s documentation, do not allow them to start work until you are certain of their legal status. The UKVI Employer Checking Service can provide assistance if required. If unsure, immediately seek advice from your immigration advisor.

In an event of an audit from the UKVI enforcement team, employers can potentially reduce penalties if they clearly demonstrate:

• consistent and robust right to work checking procedures
• regular documented training for staff performing checks
• prompt corrective actions in response to any identified issues

Additionally, cooperation during audits and proactively addressing compliance issues may help mitigate penalties.

Conclusion

Effective UK right to work checks, accurate record-keeping, and vigilant monitoring are critical to avoiding significant fines, legal issues, and reputational damage. Businesses, especially those with a UK Sponsor Licence, must maintain high compliance standards to ensure smooth and successful operations in the current regulatory environment.

To find out more contact our Employment & Immigration team here. 

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In early January, Senior Associate Nelli Shevchenko became the newest member of our team, following Solicitor Christine Wang, who joined us in November 2024. These recent appointments strengthen Sherrards’ legal expertise and capabilities, ensuring our clients continue to receive the highest standard of service in the dynamic field of UK immigration law.

A Warm Welcome to Nelli Shevchenko

Bringing over 10 years of experience from London’s leading immigration law firms, Nelli’s extensive expertise spans both corporate and private UK immigration matters, advising a wide range of clients from large multinational corporations to small entrepreneurs. Coming from a US law firm, she has a deep knowledge of the US market, including managing UK immigration matters for US corporations undergoing restructuring. Nelli’s other specialist sectors include digital technology, arts, financial and consulting services, bio and life sciences, manufacturing etc.

Throughout her distinguished career, Nelli has supported high-profile clients with their  immigration needs applying compassion and sensitivity required for each case and has developed a deep understanding of UK immigration law’s complexities. Nelli’s arrival marks a significant enhancement of Sherrards’ ability to provide bespoke, innovative immigration solutions to meet diverse client needs.

Nelli commented “I’m excited to bring my experience to Sherrards, where our team will focus on developing clear practical and innovative solutions while maintaining the personal touch that complex UK immigration matters demand.”

Ongoing Growth Strategy

These appointments reflect Sherrards’ commitment to expanding its legal expertise and reinforcing its Employment & Immigration Practice as a core service area. By investing in top-tier talent, we aim to deliver unparalleled support to businesses, entrepreneurs, and individuals navigating the UK’s immigration landscape.

“I am delighted to welcome Nelli and Christine to Sherrards”, said Mark Fellows, Head of Employment and Immigration. “Their impressive track records and expertise aligns perfectly with our mission to support our clients in this vital area of law, and to provide commercial and strategic advice to help clients achieve their desired outcomes. The expansion of the Employment and Immigration practice reflects our ongoing commitment to growth, and I am thrilled that we have Nelli and Christine on board to help us deliver on that commitment.”

 

 

The festive season is fast approaching, bringing with it workplace parties, social gatherings, and increased customer interactions. While this time of year offers opportunities for celebration, it also heightens the risk of incidents that could lead to complaints of inappropriate behaviour. Employers must remain vigilant to ensure that they meet their new legal obligations during this busy period.

Key Features of the New Legislation

Employers are now required to:

1. Implement and enforce clear anti-harassment policies that explicitly cover interactions with third parties.
2. Provide regular training to all employees, including those in customer-facing roles, to ensure they understand the standards of behaviour expected in the workplace.
3. Take swift and appropriate action when incidents of harassment are reported, regardless of the perpetrator’s relationship to the company.

Failure to comply with these obligations can lead to claims at employment tribunals and enforcement action by the Equality and Human Rights Commission (EHRC), with compensation potentially increased by 25% for non-compliance.

EHRC Guidance and Seasonal Considerations

The EHRC guidance provides a framework for compliance, emphasising risk assessments, clear reporting mechanisms, and support for victims. During the festive period, employers should pay particular attention to:

• Workplace Events: Ensure that all staff are aware of the expected standards of behaviour at holiday parties and similar gatherings.
• Customer-Facing Roles: Provide additional guidance and support to employees in customer-facing positions, as interactions may increase during the holiday shopping rush.
• Alcohol-Related Incidents: Be prepared to address behaviour that may arise from the consumption of alcohol at workplace events.

Practical Steps for Employers During the Festive Season

Employers can take the following actions to mitigate risks and foster a respectful environment during the holidays:

1. Review Policies: Update anti-harassment policies to explicitly cover workplace events and third-party interactions. Share these policies with staff before the holiday season.
2. Deliver Targeted Training: Provide refresher training focused on maintaining professional behaviour at work events and when interacting with customers, clients, or suppliers.
3. Set Boundaries for Social Events: Clearly communicate the code of conduct for workplace gatherings and ensure that managers are equipped to intervene if issues arise.
4. Enhance Reporting Procedures: Remind employees of the available channels for reporting harassment and ensure they feel confident that reports will be handled sensitively and effectively.
5. Monitor and Act Promptly: Keep a watchful eye on workplace dynamics during the festive season. Take immediate action if any incidents are reported, demonstrating a commitment to a safe and respectful workplace.
6. Engage with Third Parties: Where possible, remind clients and suppliers of your anti-harassment standards and include relevant clauses in contracts to reinforce these expectations.

Creating a Safe and Festive Environment

By taking these steps, employers can ensure the holiday season remains a time of celebration rather than one of risk. The new legal framework is an opportunity to reinforce a culture of respect and safety in the workplace, demonstrating that your organisation is not only compliant but also proactive in addressing issues.

If you need assistance in implementing these measures or understanding the implications of the new rules, contact the Sherrards employment law team for tailored advice.

To read the Worker Protection (Amendment of Equality Act 2010) 2023, click here. 

Set to come into force around September 2024, this legislation grants workers, especially those in atypical employment like temporary or zero-hour contracts, the right to request more predictable working patterns.

The Act is designed to address the challenges faced by individuals in precarious work arrangements, where the unpredictability of hours and income can create significant personal and financial insecurity.

Key elements of the Act include:

1. Eligibility: Workers need to have at least 26 weeks of service to be eligible to make a request for a predictable work pattern.
2. Request Limitations: Workers are permitted to make up to two requests within a 12-month period, covering aspects such as work hours, days, and contract lengths.
3. Employer Response: Employers must address these requests within a month and can decline them based on specific grounds such as additional costs, impact on customer demand, insufficient work during the requested times, and planned structural changes.

Implications for Employers

For employers, the Act represents a significant shift in the management of workforce flexibility. It underscores the importance of careful workforce planning and the need to establish clear, transparent procedures for handling requests under the new law.

Employers will need to prepare for an increase in formal requests for more predictable working arrangements. This preparation may involve reviewing and, where necessary, revising current employment contracts, policies, and procedures to ensure compliance with the new legal framework. Additionally, employers should consider the potential impact on business operations, particularly in sectors that traditionally rely on flexible or irregular working patterns, such as hospitality, retail, and logistics.

The Act also introduces potential liabilities for employers who fail to comply with the new requirements. As with other employment rights, failure to handle requests appropriately or to provide sufficient reasons for a refusal could result in tribunal claims, with associated reputational and financial risks.

Next Steps and Recommendations

With the secondary regulations expected to come into force next month, employers should take proactive steps to ensure they are fully prepared for the changes. Key actions include:

1. Reviewing Employment Contracts: Ensure that current contracts reflect the new rights and obligations under the Act, and consider how predictable working terms could be accommodated.
2. Updating Policies and Procedures: Establish clear, consistent procedures for handling requests, including training managers and HR personnel on how to assess and respond to requests fairly and lawfully.
3. Assessing Workforce Planning Needs: Evaluate how increased predictability might affect business operations and consider adjustments to workforce planning strategies to maintain flexibility while complying with the new requirements.
4. Communication with Employees: Clearly communicate the new rights and processes to employees, ensuring they understand their rights under the Act and how to make a request.

Sherrards Solicitors LLP is well-equipped to assist employers in navigating these changes. Our employment law specialists are on hand to provide guidance on compliance, workforce planning, and dispute resolution, ensuring that your business is prepared for the implementation of this significant legislation.

For more information or to discuss how this legislation may impact your business, please contact our employment law team.

Understand the Legal Framework

Before taking any action, it’s essential to understand the legal framework that governs employee conduct outside of work. Under English law, an employee’s conduct outside the workplace can be grounds for disciplinary action if it impacts the employer’s business or the employee’s ability to perform their job. This could include damaging the company’s reputation or relationships with clients and colleagues.

Gather Facts and Evidence

If you become aware that an employee has been involved in anti-immigration riots, it’s crucial to gather all the facts before proceeding. This may include:

• Confirming the employee’s involvement through reliable sources.
• Reviewing any social media posts or public statements made by the employee.
• Considering whether the employee’s actions have been criminally charged or are under investigation.

However, employers must also respect the employee’s right to privacy and avoid making assumptions without sufficient evidence.

Assess the Impact on the Business

Next, assess how the employee’s involvement might affect the business. This assessment should consider:

• Reputation: Could the employee’s actions harm the company’s public image?
• Workplace Harmony: Could their involvement cause tension or conflict among other employees?
• Client Relationships: Might clients react negatively if they learn of the employee’s involvement?

The severity of the situation will often determine the appropriate response. For instance, an employee in a public-facing role might pose a greater risk to the company’s reputation than one in a less visible position.

Consider Your Options

Once the facts are clear and the impact is assessed, employers must decide on the most appropriate course of action. Options include:

• No Action: If the involvement is minor and doesn’t impact the business, no action may be required.
• Informal Discussion: A private conversation with the employee to understand their perspective and reinforce company values.
• Formal Disciplinary Action: If the employee’s actions have damaged the company or breached company policy, disciplinary measures, including warnings, suspension, or even dismissal, may be necessary.

Any action taken should be proportionate and in line with the company’s disciplinary policies. Ensure that any disciplinary process is fair and consistent with the company’s procedures.

Review and Reinforce Company Policies

This situation also provides an opportunity to review and reinforce company policies related to conduct, social media use, and diversity and inclusion. Make sure that all employees understand the company’s expectations regarding behaviour both inside and outside of work.

Consider implementing training sessions that address the importance of diversity, inclusion, and respectful conduct. This can help prevent future issues and foster a more inclusive workplace culture.

Communicate with Your Workforce

If the employee’s involvement in the riots becomes public knowledge, it may be necessary to communicate with your broader workforce. However, this must be done carefully to avoid exacerbating tensions or violating privacy rights.

Consider a general communication that reaffirms the company’s commitment to diversity, inclusion, and respectful behaviour, without singling out the individual employee involved.

Seek Legal Advice

Given the complexities of these situations, it’s advisable to seek legal advice before taking any formal action. This ensures that your response complies with employment law and minimises the risk of legal challenges.

Conclusion

Employers must tread carefully when responding to employees involved in anti-immigration riots. A balanced approach that considers the legal framework, the impact on the business, and the company’s values will help navigate this difficult situation. By handling the matter with care, employers can protect their business interests while promoting a respectful and inclusive workplace.

If you require assistance in dealing with such matters, Sherrards is here to help. Please do not hesitate to contact us for expert legal advice tailored to your specific needs.

To find out more, contact Emma O’Meara. 

As a business, adapting to technological advancements in addition to legal obligations is key to success.  We raise here, some key considerations of issues to watch out for:

1. Contractual Arrangements:
   • Freelancers and Contractors: Many digital marketing roles involve freelancers or contractors. Businesses should aim to classify workers correctly to comply with employment tax regulations. HMRC is pushing forward with plans to look into contractual arrangements
   • Zero-Hour Contracts: These flexible arrangements offer agility but also require careful management to ensure fairness and compliance.
2. Remote Work and Flexible Hours:
   • Remote Work Policies: As digital marketing teams will often be working remotely, businesses should establish clear policies covering remote work expectations, communication, and data security. Knowing who to contact and when is key.
   • Flexible Hours: Balancing flexibility with productivity is essential. Employers must address work-life balance and overtime compensation.
3. Data Privacy and GDPR:
   • Marketing Data Handling: Digital marketers deal with customer data. Compliance with the General Data Protection Regulation (GDPR) is critical. This can be a complicated area and expensive if it goes wrong.
   • Consent and Transparency: Marketers must obtain explicit consent for data processing and provide transparent privacy notices.
4. Intellectual Property (IP):
   • Content Creation: Digital marketing relies on content creation (blogs, social media, etc.). Businesses should clarify IP ownership in employment contracts, making it clear who retains what on any exit. Don’t make the common mistake of adding the IP clause and then having your employee simply sign without making it a deed.
   • Non-Compete Clauses: Restrictive covenants protect IP but must be reasonable and specific.
5. Anti-Discrimination and Diversity:
   • Equal Opportunities: Employers must promote diversity and prevent discrimination based on race, gender, age, or disability.
   • Unconscious Bias: Training can help mitigate unconscious bias in recruitment and promotions.
6. Health and Safety:
   • Remote Work Safety: Employers must ensure remote workers have a safe and ergonomic workspace and be aware of changes.
   • Mental Health Support: The digital marketing industry can be intense; mental health support is crucial.
7. Agile Workforce Management:
   • Adapting to Change: The agile nature of digital marketing requires flexibility in workforce planning.
   • Consult Legal Experts: Seek legal advice tailored to your business needs, one precedent does not necessarily suit all and ensure you are aware of the ramifications of taking out that seemingly ‘innocuous’ paragraph. It could end up coming back to bite you.

In summary, the digital marketing sector thrives on innovation, but compliance with employment law remains paramount and behind all the advances taken. Businesses that proactively address these implications will navigate the evolving landscape successfully, putting the business in the best possible position as we move through 2024 and beyond.

If you want to find out more, contact Emma Peacock.

As part of The Sherrards Training Academy, we have asked our Legal Assistants and Trainee Solicitors to write articles to support their learning, and also to ensure they start to build on their own personal brand. This article has been fact-checked and proofread by Head of the Employment department, Mark Fellows.

On Monday the government issued a consultation paper which proposes re-introducing fees in Employment Tribunals and the Employment Appeals Tribunal, with the main aim ‘to contribute to the continuous improvement of His Majesty’s Courts and Tribunals Service and reduce the cost to the taxpayer to fund these services’. The new proposal comes nearly 7 years after the Supreme Court ruled the previous charging regime as unlawful when trade union Unison successfully argued that it prevented thousands of employees from securing justice.

The proposed fee is £55 to bring a claim in the Employment Tribunal, which is considerably modest in comparison to the previous fee regime This is a one-off fee which is £55 irrespective of the type of claim (but some limited claims will be exempted) or whether the claim is brought by a single claimant or multiple claimants. Unlike the 2013-2017 Tribunal fee regime, no hearing fee will be applied under the government’s most recent proposals.

To start an appeal in the Employment Appeals Tribunal, the same fee of £55 would also apply.

A system for remission from fees would be available for those who genuinely cannot afford to pay the fee (as defined by the government).

It is thought that the proposal may act as an incentive for parties to apply their mind to settlement and engage in negotiations early in the process through ACAS, without the need to proceed to issuing actual claims in the Tribunals, thereby helping to alleviate the huge pressures currently faced by the Tribunal service. It is questionable whether such a modest fee will actually have this impact, but at the same time, it was recognised that if the fee was too high, it might be open to further challenge from the Unions.

The consultation runs for 8 weeks and closes on 25 March 2024 – please stay tuned for further updates from the Employment Team.

We’ve explained the basic legal entitlements, calculation methods, and key considerations for employers navigating the evolving landscape of holiday pay rules:

Legal Entitlement and Calculation

All full-year workers, with the exception of the genuinely self-employed, are entitled to 5.6 weeks of paid statutory holiday per year. 

• • Four weeks of this entitlement must be paid at the worker’s “normal” rate of pay. This includes regular payments like overtime, bonuses, and commissions, as specified by Regulation of 13 the Working Time Regulations.
  • The remaining 1.6 weeks can be paid at the “basic” rate of pay. This is the worker’s basic remuneration (as specified by Regulation 13A).

Holiday pay is designed to ensure that workers do not suffer financially when taking time off. For those with regular hours and fixed pay, the holiday pay should mirror what they would have earned if they were at work. 

From 1st January 2024, the regulations now specify that certain payments, such as commission payments and those related to professional or personal status, must be included in the calculation of the 4 weeks of normal holiday pay.

Irregular Hours and Part-Year Workers

For leave years starting on or after 1st April 2024, part-year and irregular hours workers must have their statutory holiday entitlement calculated based on actual hours worked, using the 12.07% accrual method. Alternatively, employers can opt for rolled-up holiday pay, a method applicable exclusively to irregular hour and part-year workers.

Rolled-up Holiday Pay

Rolled-up holiday pay allows employers to include an additional amount with every payslip to cover a worker’s holiday pay, instead of paying it when the worker takes annual leave. 

The calculation involves 12.07% of the worker’s total pay, representing the proportion of statutory annual leave in relation to the working weeks of each year. If employers choose this method, the entire amount of leave for irregular hours and part-year workers is paid at the ‘normal’ rate of pay.

Considerations for Employers

Under new holiday pay rules, employers intending to implement rolled-up holiday pay should review workers’ contracts to ensure compliance and avoid unintentional variations. For those opting not to use rolled-up holiday pay, the existing 52-week reference period method can be employed to calculate holiday pay, considering the worker’s previous 52 paid weeks.

Payment in Lieu

If irregular hour or part-year workers do not utilise their accrued holiday entitlement upon leaving employment, they are entitled to a ‘payment in lieu.’ Employers should calculate this by determining the remaining holiday entitlement and computing the holiday pay for the period. Deductions should be made for any holiday taken during the employment period.

Staying Compliant with Holiday Pay Rules

Employers must stay informed about holiday pay rules and adapt their practices accordingly. Compliance with these regulations not only safeguards against legal issues but also fosters a fair and transparent work environment. By understanding the nuances of holiday pay entitlement and calculation, employers can ensure that their workforce is compensated appropriately for their time away from work.

Our Employment Law team is here to answer any questions or queries about the new holiday pay rules, and what they could mean for your business. Contact us today to find out more.

Moving job should be a straightforward matter, but many employees either don’t have a copy of their most recent employment contract or fail to review it before embarking on their job hunt.

What are restrictive covenants?

Restrictive covenants in employment contracts are legal clauses crafted to protect an employer’s business interests by limiting an employee’s actions during or after their employment. Common types include non-compete agreements, non-solicitation clauses, and confidentiality agreements. 

This can have a significant impact on an employee’s job hunting by restricting: 

• where they can work
• who they can approach for business
• how they use knowledge gained from their previous role

Key restrictive covenant clauses to watch out for

A well drafted employment contract will typically contain the following suite of post-termination restrictions:

Non-compete –

These clauses are inserted to prevent the employee from working for a direct competitor of their employer. A well drafted clause will normally define what is meant by a direct competitor. These clauses may even go further and say that an employee cannot set up on their own and work in competition. (Check out the government website for more details)

Non-solicitation clauses –

A clause of this type will be included in the employment contract where the employer wishes to protect against its clients and contacts from being enticed away to work with the employee somewhere else. This helps safeguard valuable business relationships.

Non-poaching clauses – 

This clause is designed to deter the employee from encouraging their former colleagues to leave their employment and join them in a new venture. This is focussed on maintaining team stability in the original company.

Non-dealing clauses –

This restriction is sometimes inserted to widen the effect of the above covenants, so that a departing employee is prevented from soliciting or poaching, but also that they cannot even deal with /or have contact with the people defined in those clauses.

Confidentiality clauses – 

This is an ongoing restriction that carries on in perpetuity. If well drafted, the clause will contain a concise list of information that is considered to be confidential and should not be utilised in any way by the employee.

Employers should also use that meeting as an opportunity to remind a departing employee of their ongoing obligation of confidentiality and any restrictive covenants they are subject to. Collectively these obligations are commonly referred to as post-termination obligations.

Action points for employers and employees

For Employers:

Conduct exit interviews: This is an opportunity for the employer to run through a checklist of items that a leaver needs to deal with before they depart e.g. returning company property, handover of work. Ensure departing employees understand their post-termination obligations. Provide written confirmation of these restrictions.

Review contracts: Regularly review employment contracts to ensure they include well-drafted and enforceable restrictive covenants in case of the event that an employee leaves the company.

Seek legal advice: Consult legal professionals to address breaches, update contract terms in line with current business needs or to enforce legal compliance from your employee.

For Employees:

Review your contract: Familiarize yourself with the restrictive covenants in your employment contract before pursuing a new job.

Seek clarification: If you’re uncertain about any terms, request clarification from your employer in writing so clauses are clearly defined and are not ambiguous or open to interpretation.

Get legal support: Consider consulting an employment solicitor to understand how restrictive covenants may impact your job search or new role.

If you’re an employer and you’ve discovered that an employee has left and is now acting in breach of their contract or you’re an employee that’s now being pursued by your former employer, please contact Aaron Heslop for a no obligation discussion.

Furthermore, if you’re looking to review your existing employment contracts, we would recommend a discussion with our Employment Team.