Macnairs + Wilson Solicitors Blog & News

The Lib Dems have accused universities of ‘stifling free speech’. The accusation comes after it was found that staff who were employed by a number of universities had signed compromise agreements, known as ‘gagging clauses’. The Lib Dems say that the inclusion of these clauses is an attack on free speech from the institutions which should be defending it, however universities have defended their actions, saying there are a range of reasons that the clauses are included in settlement agreements.

Settlement agreements are a way for employers and employees to come to an agreement that allows them to part terms in an amicable manner that is beneficial to both parties.

I have had to give advice to a number of clients recently in connection with Settlement Agreements, where employment is terminated by agreement usually for some enhanced payment to the employee. I have noticed that the employer will frequently attempt to retain its’ rights to enforce contractual provisions restricting future employment. These clauses are usually referred to as “Restrictive Covenants.” Many people wrongly assume that these clauses are not enforceable. This is absolutely not the case as companies are entitled to protect their legitimate interests from harm by a dishonest employee who intends to steal a company’s goodwill and business knowledge, built up often at great cost over a number of years. A recent decision, however, serves as a reminder that companies cannot always rely upon these clauses.

We were consulted recently by an employer who wished to place an advert for new staff but was worried they might be in contravention of the Equality Act because of the wording they proposed. Employers should remember that discrimination laws extend to job adverts and the owners of business premises should also be aware that if they allow a discriminatory advert to be posted on their premises then they may also be guilty of discrimination.

There has been a decision released today by the Employment Tribunal in the case of British Gas Trading Limited v Mr Z J Lock & Secretary of State for Business, Innovation and Skills which has major implications for businesses and employees alike in industries where commission is a part of the remuneration package.