[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-275963-105":3,"doc-detail-275963-en":81,"detail-sidebar-cat-1-en-105":97},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","promoting-employees-key-contractual-considerations","Promoting employees - key contractual considerations","","Legal update focusing on contractual obligations when promoting employees, emphasizing how promotions must be documented and how restrictive covenants are evaluated. Key cases show that covenants are assessed at the time they were entered into, and that simply counter-signing letters or stating “other terms unchanged” may not introduce a new enforceable covenant. The update also stresses tailoring non-solicitation restrictions to the role and organization, and updating contracts to avoid gaps in enforceable duties.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/letters/","Letters",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/promoting-employees-key-contractual-considerations/275963/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/promoting-employees-key-contractual-considerations/275963.png","ImageObject",442,249,{"name":42,"@type":43},"Đào","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-04","2026-09-15",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",12,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"Why must employers update contracts when promoting employees?","Question",{"text":63,"@type":64},"Employers need to reflect the employee’s new role and duties in updated contract documentation, especially regarding restrictive covenants. Failure to properly restate covenants can undermine enforceability.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"At what point are restrictive covenants evaluated for validity?",{"text":68,"@type":64},"Restrictive covenants are evaluated at the time they were originally entered into. A covenant that was invalid for the employee’s earlier, junior role is not made valid later simply because the employee becomes more senior.",{"name":70,"@type":61,"acceptedAnswer":71},"Is a counter-signed letter stating “other terms unchanged” enough to renew covenants?",{"text":72,"@type":64},"No. The document must clearly restate and expressly renew the covenants; saying that other terms remain unchanged may be insufficient to introduce a new covenant. A brand new contract may be advisable for key roles.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},275963,1790026331,{"code":4,"msg":82,"data":83},"success",{"doc_id":79,"user_id":84,"nickname":42,"user_avatar":85,"doc_module":22,"category_id":86,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":87,"file_id":88,"file_url":89,"file_type":90,"file_size":91,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":26,"language":92,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":93,"faqs":94,"seo_title":95,"seo_description":12,"update_tm":96,"read_time":22},1374402968488,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0",18,"Legal Update October 2012  \nPromoting employees – key contractual considerations  \nThere have been a number of key decisions made over the last few months which emphasise the care employers need to take when promoting employees and how this promotion is documented. Specifically, employers need to ensure that contracts are updated to reflect the new role and appropriate duties generally, but particular care should be taken in relation to restrictive covenants, as shown in the recent cases of Patsystems Holding Limited v Neilly and Safetynet Security Limited v Coppage.  \nMr Neilly started working for Patsystems in 2000 in a relatively junior role. His salary was £35,000 and he was on one month’s notice. Critically, he had a 12 month non-compete restrictive covenant in his contract, which stopped him from competing with the Company in relation to business he had been actively involved with during the 12 months prior to the termination of his employment. Mr Neilly was promoted to Director of Global Accounts in 2005 and as a result his salary more than doubled and his notice period increased to three months. Patsystems sent Mr Neilly a letter which recorded this variation to his contract and specified that all other terms and conditions would remain unchanged. Mr Neilly counter-signed this letter. In 2012, Mr Neilly gave three months’ notice that he was going to leave Patsystems and told them that he was going to work fora company Patsystems considered to be a competitor, in breach of his non-compete covenant.  \nPatsystems applied to enforce the covenant against Mr Neilly, and the High Court rejected their application. The court said that the covenant was not valid at the time it was entered into in 2000, because a 12 month non-compete covenant for a junior employee was not enforceable. The key point that the court made was that restrictive covenants have to be evaluated at the point at which they were entered into. If the covenant was invalid when it was entered into, it was not made valid by the fact that when the employer sought to  \nenforce it, the employee was holding a more senior position. This case emphasises the need for employers to undertake regular reviews of their employees’covenants, in order to avoid having to defend the enforceability of a covenant in relation to a previous more junior role, when the individual is now in a more senior position.  \nThe important point to note from this decision is that the court rejected the employer’s assertion that the letter which had been counter-signed by Mr Neilly meant that the covenants should be looked at with reference to the new role. The court said that the document only recorded that the other terms and conditions remained “unchanged”, which was not enough to amount to the introduction of a new covenant. As a result of this, employers should make sure that when an employee is promoted, their covenants are clearly restated. It will not be sufficient to simply say that all other terms and conditions (including the covenants) remain unchanged. It was not clear from the Patsystems case whether employers should enter into a brand new contract of employment with a promoted employee or whether a well worded re-confirmation letter will be sufficient. Our view is that at the very least, employees should receive a letter which re-states and expressly renews their covenants with effect from the promotion. If the employee in question is being promoted to perform a key role, where the covenants are of particular importance, we would suggest issuing a brand new contract, to avoid any suggestion that the covenants are judged against the old role.  \nThe case of Safetynet Security Limited v Coppage highlights that it is very important to make sure that covenants are tailored appropriately to the role in question and the context of the covenant. In the Patsystems case, the failing was having a covenant that was inappropriate for the level of employee as it could only really be justified fo","cbCaicCAOlMgT4c7","https://ap.wps.com/l/cbCaicCAOlMgT4c7","pdf",168568,"English","# Promoting employees – key contractual considerations\n## Updating contracts after promotion\n## Restrictive covenants: when enforceability is assessed\n## Tailoring covenants to role and organization\n## Fiduciary duties and contract wording","[{\"question\":\"Why must employers update contracts when promoting employees?\",\"answer\":\"Employers need to reflect the employee’s new role and duties in updated contract documentation, especially regarding restrictive covenants. Failure to properly restate covenants can undermine enforceability.\"},{\"question\":\"At what point are restrictive covenants evaluated for validity?\",\"answer\":\"Restrictive covenants are evaluated at the time they were originally entered into. A covenant that was invalid for the employee’s earlier, junior role is not made valid later simply because the employee becomes more senior.\"},{\"question\":\"Is a counter-signed letter stating “other terms unchanged” enough to renew covenants?\",\"answer\":\"No. The document must clearly restate and expressly renew the covenants; saying that other terms remain unchanged may be insufficient to introduce a new covenant. A brand new contract may be advisable for key roles.\"}]","Promoting employees - key contractual considerations | PDF",1789490507,{"code":4,"msg":82,"data":98},[99,104,108,113,118,123,128,131,136],{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},11,"Presentations",90,"presentations",{"id":55,"doc_module":22,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},"Resumes",80,"resumes",{"id":109,"doc_module":22,"doc_module_name":25,"category_name":110,"show_sort_weight":111,"slug":112},14,"Invoices",70,"invoices",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},15,"Posters",60,"posters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},16,"Social Media",50,"social-media",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":125,"show_sort_weight":126,"slug":127},17,"Forms",40,"forms",{"id":86,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":129,"slug":130},30,"letters",{"id":132,"doc_module":22,"doc_module_name":25,"category_name":133,"show_sort_weight":134,"slug":135},21,"Paper Templates",5,"papers-templates",{"id":137,"doc_module":22,"doc_module_name":25,"category_name":138,"show_sort_weight":4,"slug":139},158,"General","general-158"]