Showing Restraint

Supreme Court considers restrictive covenant wording for the first time in a century

In the case of Tillman v Egon Zehnder Limited the Supreme Court (SC) considered whether or not words could be removed from a non-compete clause to make it enforceable.

The case was brought by Ms Tillman who argued that a 12 month non-compete clause that did not allow her to be interested in any competing business (including holding a shareholding) was an unreasonable restraint of trade. This was on the basis that she wished to work for a competing business in the field of executive recruitment within the time period. She informed her previous employer of this fact and that she considered that the covenant was void.