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Employers dodge a bullet as Supreme Court rules in favour of upholding restrictive covenant

Employers dodge a bullet as Supreme Court rules in favour of upholding restrictive covenant

HR News - 3 July 2019

Today the Supreme Court handed down the long awaited judgement in the Tillman vs Egon Zehnder Ltd case that means restrictive covenants in employment contracts for thousands of senior executives in the City are likely to remain enforceable, says GQ|Littler, the London office of the largest global employment law firm for employers.

The landmark ruling is the first Supreme Court judgment in this area for over a century.

The covenant is commonplace in the contracts of senior executives across financial services and professional services.

Raoul Parekh, Partner at GQ|Littler, the London office of the largest global employment law firm for employers, comments: “The ruling from the Supreme Court in favour of upholding restrictive covenants is good news for employers.”

“Whilst employers have dodged a bullet this time, Egon Zehnder was still forced to go all the way to the Supreme Court to fight its case. No one will want to repeat that.”

“This case should act as a wake-up call for employers: now is the time to go through restrictive covenants to make sure that your covenants are enforceable. Fixing issues before an employee leaves might cost a few hundred pounds; fixing them afterwards might cost tens of thousands or be entirely impossible.”


You can read the full article here.