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

24 January 2019 #Employment


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.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
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Ciara Duggan

Ciara Duggan
Paralegal

E: cduggan@clarkslegal.com
T: 020 7539 8052
M: 0778 665 5903

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