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The judges unanimously allowed an appeal in the case of Egon Zehnder v Tillman, rendering the non-compete clause set by the recruitment company enforceable and clarifying how employers should approach the drafting of non-compete clauses in employment contracts.
Jul 3, 2019 · The Supreme Court has today (03 July 2019) handed down its long-awaited decision in the appeal of Tillman v Egon Zehnder Ltd, setting out a new test for severance in relation to post-termination restrictions.
On 23 May 2017 Mr Justice Mann (“Mann J”) in the High Court granted the injunction. The Court of Appeal allowed Ms Tillman’s appeal and set aside the injunction.
The judgment is the first employee competition case to be heard by the Supreme Court in 100 years and provides important clarification on the “validity principle” in construing agreements and the correct approach to severance in restraint of trade cases.
- Introduction
- Tillman: The Background
- The Supreme Court Judgment: Overview and Analysis
- Conclusions
In its landmark judgment in Tillman v Egon Zehnder Ltd,1 the UK Supreme Court has delivered detailed guidance on the law relating to the enforceability of restrictive covenants in employment contracts. This is the first judgment on this subject in the history of the Court, and indeed in the history of the judgments of its predecessor, the House of ...
The background facts may be briefly stated. In 2003, Egon Zehnder Ltd (‘Egon’), the UK subsidiary of a Swiss company and part of a worldwide specialist recruitment group, hired Ms Tillman to work in its financial services practice area. Initially Ms Tillman worked as a consultant, and she was then promoted to principal in 2006, partner in 2009 and ...
On appeal, the three issues addressed by the Supreme Court were whether: 1. (i) if the non-compete covenant prohibited shareholding, that part of the covenant came within the restraint of trade doctrine; 2. (ii) the words ‘interested in’, properly construed, prohibited any shareholding whatsoever; and 3. (iii) the correct approach to severance had ...
Tillman is a landmark judgment in labour law, and its impact is already being witnessed.41 Hailed judicially as ‘a wonderful exposition of the law in relation to the severability of post-employment restraints’,42Tillmanhas ushered in much-needed clarity of this area of labour law. Given the infrequency with which restraint of trade disputes proceed...
- Desmond Ryan
- 2020
Jul 10, 2019 · The Supreme Court’s recent judgment in the case of Tillman v Egon Zehnder clarified how the courts view post-termination restrictions in employment contracts. But how should HR teams proceed when drawing up terms? What was the case about? In 2004, Ms Tillman joined Egon Zehnder, a recruitment firm.
People also ask
Why did the Supreme Court reject Tillman's 'concerned in' clause?
What is the new severance test in Tillman V Egon Zehnder?
What does Tillman V Egon Zehnder mean for employers?
Did Egon Zehnder take action against Ms Tillman?
Is Tillman a severance case?
What happened to MS Tillman's employment with Egon?
The judgment is an important one in the employee covenant context. Its most significant effects are clarifying the ‘validity principle’, and lowering the test for severance, allowing an employer more readily to excise an offending part of post-termination restriction.
