Employmentbuddy - Your best buddy in human resources

Supreme Court to rule on enforceability of non-compete restrictive covenant

24 January 2019 #Contracts

Tillman v Egon Zehnder Ltd is due to be heard in the Supreme Court this week, serving as a reminder to employers about how carefully they must word a restrictive covenant.

The wording being examined is in relation to a six-month non-compete clause, which prevented the employee from becoming “concerned or interested in any business carried on in competition” with her employer.

This was found in the Court of Appeal to be too wide, and therefore unenforceable, as it would restrict the employee from even buying shares in a competing company.

Such clauses are a typical feature of employment contracts covering a wide range of occupations.  Should the Supreme Court uphold the ruling, it would again highlight the need for employers to ensure that restrictive covenants are tightly suited to the employee’s role and to its protectable interests.  It is important to keep these clauses under review and to update them where necessary as people progress through the business.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking professional and legal advice. Please refer to the full General Notices on our website.

Comments

Be the first to comment on this blog.


Leave your comments
Your comments will be published after being approved by employmentbuddy team, displaying your name as you provide it. But your contact details will never be published. Please read our terms and conditions.


Ciara Duggan

Ciara Duggan
Paralegal

E: cduggan@clarkslegal.com
T: 02075398052
M: 07786655903