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In an eagerly awaited decision, the Supreme Court gave its judgment on the meaning of wording commonly used in non-compete post-termination restrictions and the possibility of severing such wording where it would otherwise render such a restriction unenforceable.

Background

Ms Tillman was the Joint Global Head of Financial Services of executive search and recruitment firm Egon Zehnder at the time she left its employment. Her employment contract included a noncompete post-termination restriction of six months’ duration. This noncompete post-termination restriction provided that Ms Tillman would not “directly or indirectly engage or be concerned or interested in any business carried on in competition with any of the businesses” of Egon Zehnder with which she had been materially concerned in the period of 12 months prior to her employment ending. This restriction became contentious and the subject of substantial litigation when Ms Tillman made known her intention to work for a competitor in apparent breach of the non-compete restriction.

Egon Zehnder brought proceedings to enforce the non-competition covenant and successfully obtained an injunction against Ms Tillman. Ms Tillman appealed this decision, arguing, among other things, that the covenant was void on the basis that it was too widely drafted. In particular, Ms Tillman argued that the use of the words “interested in” prevented her from holding even a minority shareholding in a competitor and the restriction was therefore void as an unenforceable restraint of trade. The Court of Appeal agreed and set aside the injunction. Egon Zehnder then appealed to the Supreme Court.

Continue Reading Positive news for employers wishing to enforce post-termination restrictions

The European Court of Justice (ECJ) has recently decided that the Working Time Directive (WTD) imposes an obligation on employers in all EU member states to record all working time, not just excess hours or overtime. This marks a significant departure from standard practice and may mean that employers will, in future, be required to implement systems that record workers’ time.

Background

In Confederación Sindical de Comisiones Obreras, the ECJ considered the provisions concerning rest periods and the weekly working hours limit under the WTD. In this case, a number of trade unions brought a group action against the employer, seeking to obtain a declaration that the employer was under an obligation to set up a system recording the actual amount of time worked each day. This system should, the claimants argued, make it possible to check that the working times laid down in legislation and collective agreements were properly adhered to. The employer did not have such a system in place, but it did operate a computer application that enabled whole-day absences to be recorded without measuring the duration of time worked by each worker or the number of overtime hours worked.

Article 3 WTD provides for a minimum period of daily rest (11 hours in any 24-hour period) while Article 5 provides for a minimum period of weekly rest (24 hours per period of seven days). The WTD also contains an upper limit of 48 hours for the average working time for each seven-day period, although UK employees can opt-out of this limit by written agreement.

The ECJ was asked to consider whether national Spanish law (which did not require every hour to be recorded) was sufficient to ensure the effectiveness of the working time limits laid out in the WTD, and if not, whether employers should be required to establish systems whereby the actual daily working time worked by full time employees is recorded.

Continue Reading Recording working time: do changes lie ahead?

This week, the Government announced a further measure aimed at eliminating gender pay inequality, requiring larger businesses with more than 250 employees to publish information regarding the bonuses awarded to their male and female employees.

This announcement is part of the Government’s existing strategy aimed at eliminating pay inequalities between men and women. This strategy