Restrictive Covenants

[Teleman]

I was made redundant from a recruitment company at end of 2020. The company will cease to trade soon and are trying to sell the assets of the business. Can my ex employer still enforce my restrictive covenant once the company ceases trading? The MD is trying to bully all staff into compliance which makes me think that, legally, he may not have a leg to stand on and is worried about the price he gets.

[EnglandPi]

Good question: If it's a limited company and ceases trading but stays an active company then in theory the restrictive covenant could be enforcable but if the company is liquidated or desolved then the restrictive covenant would not be enforcable.