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United Kingdom Leading Case exclusion and limitation clausesillegality

Tillman v Egon Zehnder Ltd

[2019] UKSC 32
JurisdictionUnited Kingdom
CourtUK Supreme Court
Year2019
StatusBinding authority

Summary

An unreasonable part of a non-compete clause may be severed if the remainder is reasonable, legitimate, and supported by consideration.

Key Principle

A non-compete clause in an employment contract can be saved by severance of an unreasonable part (a prohibition on holding shares) if the remaining clause is reasonable and supported by consideration.

Area of Law

employment

Related Cases

Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd (2022) 275 CLR 165

Employee/independent contractor characterisation is determined by the legal rights and obligations in the written contract, not the totality of the relationship.

ZG Operations Australia Pty Ltd v Jamsek (2022) 275 CLR 215

HCA confirmed that employee/contractor distinction is determined by contractual terms alone, rejecting the multi-factorial totality-of-relationship test.

WorkPac Pty Ltd v Rossato (2021) 271 CLR 456

A casual employee's status is determined by the contractual terms at engagement; regularity of work pattern does not transform casual employment into permanent employment.

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