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Illegality meaning

What does Illegality mean?
In practice, illegality describes the doctrine that courts will not enforce a claim that seeks to profit from, or requires performance of, an unlawful or seriously immoral act. There is no single statutory definition; the rules are largely case-law based and apply across contract, tort, unjust enrichment and trusts. Key features include: - Statutory illegality (contravention of legislation or sanctions). - Common-law/public-policy illegality (ex turpi causa), such as contracts to commit a crime, corruption or agreements contrary to public policy. - Supervening illegality: if performance becomes unlawful after formation, the contract is typically discharged for frustration rather than enforced. Remedies are flexible. Courts may refuse enforcement, sever offending terms, or allow restitution to avoid disproportionate penalties. In England & Wales and Northern Ireland, the modern approach is a policy-based assessment of factors (purpose of the law, seriousness, proximity of the illegality and proportionality). Scots law applies a broadly similar public-policy analysis. Irish law is comparable, though developed in its own case law, with scope for severance and restitution. Practically, illegality is a defence to enforcement and a risk for drafting and transactions; compliance clauses, severability, and prompt withdrawal from an unlawful purpose can be critical.
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View the related Checklists about Illegality

CHECKLISTS
Employment Tribunal drafting checklist—unfair dismissal by reason of redundancy: claims and responses (Great Britain)

Both parties Did the Claimant hold employee status? Refer to Practice Notes: Entitlement to claim unfair dismissal-Eligibility and Employee status Did the Claimant meet the necessary length of service, or is an exemption engaged? See Practice Note: Qualifying period for unfair dismissal Has the Claimant satisfied the early conciliation obligation, or does an exemption apply? See Practice Note: The early conciliation requirement Was the claim lodged within three months, or within any extended period where early conciliation applies? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement-Extension to time limits (the 'stop the clock' provisions) Is the employment contract potentially void for illegality? See Practice Note: Entitlement to claim unfair dismissal-Illegality Is the Claimant within a class of employees excluded from unfair dismissal protection, for example police constables? See Practice Note: Entitlement to claim unfair dismissal-Particular types of employment Was the Claimant’s employment based in Great Britain? See Practice Note: Entitlement to claim unfair dismissal-Whether employee works in...

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CHECKLISTS
Unfair dismissal for ill-health capability: Employment Tribunal ET1/ET3 drafting checklist—jurisdiction, intermittent/long-term absence, medical evidence, procedure, appeals and remedies (England, Wales and Scotland)

This checklist highlights the key points to weigh up when preparing an ET1 claim or an ET3 reply. It addresses jurisdictional matters, such as the claimant’s right to pursue unfair dismissal and whether the claim was filed within time. It considers the reason for dismissal and ill-health capability, including sporadic absences, long-term absence and diminished performance. It also assesses the substantive and procedural fairness of the dismissal. Finally, it identifies remedy issues to think about, eg reinstatement, re-engagement and compensation. Both parties Was the Claimant an employee? See Practice Notes: Entitlement to claim unfair dismissal-Eligibility and Employee status Does the Claimant have the necessary qualifying service? See Practice Note: Qualifying period for unfair dismissal Has the Claimant met the early conciliation requirement, or does an exemption apply? See Practice Note: The early conciliation requirement Was the claim submitted within three months, or within the extended period where early conciliation applies? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement-Extension to...

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CHECKLISTS
Capability-based Unfair Dismissal: Performance and Gross Incompetence—Drafting Checklist for Claimants and Respondents (England, Wales and Scotland)

Both parties Is the Claimant properly classed as an employee? Refer to Practice Notes: Entitlement to claim unfair dismissal-Eligibility and Employee status. Did the Claimant meet the necessary length of service? See Practice Note: Qualifying period for unfair dismissal. Has the Claimant satisfied the early conciliation requirement, or does an exemption apply? Refer to Practice Note: The early conciliation requirement. Is the claim issued within three months, or within any extension triggered by early conciliation? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement-Extension to time limits (the 'stop the clock' provisions). Could the employment contract be void for illegality? See Practice Note: Entitlement to claim unfair dismissal-Illegality. Is the Claimant within an excluded class, eg police constables, and therefore outside unfair dismissal protection? See Practice Note: Entitlement to claim unfair dismissal-Particular types of employment. Was the Claimant’s employment principally located in Great Britain? See Practice Note: Entitlement to claim unfair dismissal-Whether employee works in Great Britain. ...

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View the related Flowcharts about Illegality

FLOWCHARTS
Checklist of Road Traffic Accident Defences: Contributory Negligence (Seat Belts, Motorcycle/Cycle Helmets, Intoxication) and Other Defences (Involuntary Act, Latent Defects, Illegality)

Contributory negligence When the defendant holds primary responsibility for the incident, they may assert that the other party contributed to it. The matters to assess are: which parties were to blame for the incident, and to what extent? in what proportion should damages be allocated, having regard to the comparative responsibilities of those at fault?...

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View the related News about Illegality

NEWS
English Commercial Court: EU sanctions freeze on-demand bonds; NCA findings determinative; ownership/control including trusts and firewalls analysed; foreign illegality in France/Italy renders payment unenforceable under English law

LLC Eurochem North-West-2 and another company v Societe Generale S.A. and other companies [2025] EWHC 1938 (Comm) This is a highly important decision for practitioners dealing with international sanctions, as the court delivers a detailed examination of how EU sanctions interface with domestic sanctions authorities in such circumstances. It also provides an in-depth consideration of the notions of ‘ownership’ and ‘control’ for the purpose of sanctions, including where trust arrangements feature, which is not unusual when there is a link to a designated individual. The ruling is likewise of real assistance to those working with performance bonds and related trade finance instruments in the sanctions context. The background facts The relevant parties The dispute stemmed from six on-demand bonds (Bonds) issued in 2021 and 2022 by Société Générale (SocGen) and ING Bank (ING) (the Banks) in favour of EuroChem North-West-2 (EuroChem NW2), a Russian entity. The Bonds were issued under contracts between EuroChem NW2 and Tecnimont S.P.A (Tecnimont), an Italian engineering company, and its Russian affiliate...

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NEWS
UK commercial law weekly update: ASA and ICO actions, CMA digital markets regime, key contract and IP judgments, payment practices reforms, customs updates, and supply chain strategy

In this issue: Advertising, marketing and sponsorship Consumer protection Contracts Intellectual property International Sale and supply of goods Supplier management Daily and weekly news alerts New and updated content Dates for your diary Trackers Advertising, marketing and sponsorship ASA rulings—17 January 2024 The Driver Vehicle Standards Agency (DVSA) lodged a complaint with the Advertising Standards Authority (ASA) about statements on www.escooters4less.co.uk—an online seller of electric scooters—concerning e-scooters and their illegality. The ASA upheld the complaint. See: LNB News 17/01/2024 63... ASA to regulate online advertising of less healthy food and drink products Ofcom has designated the Advertising Standards Authority (ASA) to regulate online advertising of less healthy food and drink products, using its designation powers under the Communications Act 2003. Ofcom is satisfied that, among other considerations, the ASA is a fit and proper body, has adequate financial resources to ensure the effective performance of the Designated Functions, and will...

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NEWS
UK public law weekly briefing: Brexit SIs, Rwanda Treaty scrutiny, NI electoral changes, sanctions and human rights case-law, security measures, subsidy control, and COVID-19 Inquiry - 18 January 2024

In this edition: Brexit headlines Brexit SIs Post-Brexit transition guidance Coronavirus (COVID-19) Constitutional and administrative law State accountability and liability Equality and human rights State security and intelligence Subsidy control and State aid Management and strategic planning Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Brexit headlines ESC releases first Special Report of Session 2023–2024. The European Scrutiny Committee (ESC) has issued its opening Special Report for Session 2023–2024, setting out the government’s reply to the ESC’s 23rd Report of Session 2022–2023, arising from its inquiry into UK representation to the EU. Regarding publication of UK Mission to the European Union (UKMis) activities and updates on UK–EU relations, the government pointed to the coordinating roles of the Foreign, Commonwealth and Development Office (FCDO) and the Foreign Secretary on UK–EU policy, and the UKMis Communications Team’s use of social media. On seeking...

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View the related Practice Notes about Illegality

PRACTICE NOTES
Personal Injury and Clinical Negligence July 2025: discount rate, costs/QOCS, RTA reforms, CPR updates and leading cases (England and Wales) [Archived]

PI & Clinical negligence horizon scanner—July 2025 [Archived] ARCHIVED: This Practice Note is archived and is not maintained. It summarises the principal legal developments relevant to personal injury and clinical negligence practitioners as at July 2025. For developments predating this horizon scanner, see PI and Clinical Negligence horizon scanning and key cases—overview. Key PI and clinical negligence developments The personal injury discount rate—a review In late 2024, the Lord Chancellor, Shabana Mahmood MP, revealed the outcome of her five‑month review of the discount rate, initiated in July 2024. One month after the new +0.5% discount rate took effect, Thea Wilson (barrister at 12 King’s Bench Walk) assesses its impact on cases, the responses from claimant and defendant representatives, and the consequences of the change for legal practitioners. See News Analysis: The personal injury discount rate—a review. MoJ announces reduction in CFO’s interest rates The Ministry of Justice (MoJ) has announced lower interest rates for the Courts Funds Office’s (CFO) special and basic accounts...

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PRACTICE NOTES
Illegality in Employment Contracts: statutory rights, discrimination, ultra vires, contracting-out, confidentiality and whistleblowing, and restrictive covenants, with the Patel v Mirza proportionality analysis (UK)

Practice Note This Practice Note explores the issues that arise around illegal or unlawful terms in employment contracts, including pay provisions intended to circumvent tax legislation, agreements with individuals who are not lawfully permitted to work in the UK, and arrangements to undertake work that is illegal or contrary to public policy. It also analyses the consequences of illegality, including where only one party is implicated, the absence of any requirement for knowledge of the illegality, and the continued ability to bring discrimination claims. The Note addresses the public interest dimension and the Supreme Court’s ‘trio of considerations’ identified in Patel v Mirza. Confidentiality clauses and the limits of contracting-out are examined as well. An employment contract can be tainted by illegality in the same way as any other agreement. Historically, one of the most significant areas of illegality has been covenants in restraint of trade, which will not be enforceable unless they fall within one of the lawful exceptions recognised under the common law principles on restraint of...

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PRACTICE NOTES
UK Supreme Court 2016: key rulings on deceit, insurance fraud, illegality in unjust enrichment, malicious prosecution of civil claims, and vicarious liability

ARCHIVED: this Practice Note is not maintained and is provided for background reference only. In addition, some links may not take you to the provisions as they stood when the guidance in this Practice Note was published. A varied slate of Supreme Court rulings in 2016—what should you know? Throughout 2016 there were notable decisions across multiple areas, with clear divisions among our most senior judges frequently on display. In this overview of 2016, we look at: rescinding a settlement on the basis of deceit (Hayward v Zurich) (see below) fraudulent presentation in insurance claims (Versloot v HDI) (see below) unjust enrichment claims affected by illegality (Patel v Mirza) (see below) malicious prosecution in civil proceedings (Willers v Joyce) (see below) the ‘close connection’ test for vicarious liability (Mohamud v WM Morrison) (see below) Setting aside settlement agreement for deceit (Hayward v Zurich) In Hayward v Zurich, the Supreme Court was asked to set aside a settlement...

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View the related Precedents about Illegality

PRECEDENTS
Precedent: Notice designating Early Termination Date following an Illegality Termination Event under the 1992 ISDA Master Agreement (Multicurrency—Cross-Border)

[ Insert Lead-in Language ] Illegality Termination Event We hereby refer to our notice dated [ insert date ] (the ' Original Notice ') formally notifying you of the occurrence of an Illegality Termination Event. If Party A is the sole Affected Party and Section 5(b)(i)(1) applies: In accordance with Section 6(b)(ii) of the Agreement, we have employed all reasonable endeavours (not requiring us to bear any loss, save for immaterial, incidental expenses) to, within 20 days from the date on which the Original Notice became effective, diligently transfer all of our rights and obligations under the Agreement in respect of the Affected Transactions to another of our Offices or Affiliates so that the Illegality Termination Event no longer subsists...

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PRECEDENTS
Form of Notice Designating an Early Termination Date following an Illegality Termination Event under the 2002 ISDA Master Agreement

Notice designating an Early Termination Date following an Illegality Termination Event [ Insert Lead-in Language ] We refer to our notice of [ insert date ] (the 'Original Notice'), which advised you of the occurrence of an Illegality Termination Event. Waiting Period [ [ No Waiting Period is applicable in relation to the Illegality Termination Event, as it arose under Section 5(b)(i)(2), but concerns a payment, delivery or compliance obligation that was due on the date of the Original Notice...

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PRECEDENTS
Form of Section 6(b)(i) Notice: Illegality Termination Event under Section 5(b)(i), 2002 ISDA Master Agreement (Affected Transactions, Credit Support and Waiting Period)

Notice of an Illegality [ Insert Lead-in Language ] We hereby notify you that the following situation has arisen: [ Set out, with appropriate specificity, the facts and circumstances giving rise to the Illegality. Your account should be sufficiently detailed and linked to the wording of Section 5(b)(i) so that the counterparty could reasonably be expected to understand the basis for your determination. ]...

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