The recent English case of Egon Zehnder Ltd v Tillman (2017) is interesting. The defendant joined the claimant’s recruitment business in 2002 on terms including a 6 month no-compete restriction. Her seniority and importance in the business increased significantly but she was never given a new contract. When she wished to take up a position with a New York competitor the claimant obtained an injunction, but was successful only on the basis that it was able to show that the restriction was intended to take into account the rapid promotion the defendant was expected to achieve. Otherwise, in line with earlier cases confirming that the reasonableness of a restriction has to be assessed at the time it is entered into, it would have been difficult for the claimant to show that a restriction entered into many years previously at the outset of the employment was necessary to protect the business at that time.
Read the full article here: Restrictive Covenants in Contracts of Employment