Employment contracts – restraint of trade?

Many employment contracts have restrictions on employees when they leave their employer and start working for a new employer in the same business.

The law in Victoria is different from other states in that; what one would consider a valid agreement is read down to be a deliberate attempt by the employer to unfairly reduce competition.

Solicitation of clients of your x employer should be reasonably protected for a period of time but difficulties arise in being able to identify the area of business and the customers related to that.

In a recent article in the Law Institute Journal Dr Robert Dean Barrister commented that because the courts were adopting a very conservative attitude when examining restraint of trade clauses Employers and Employees need to be aware that if the employment contract fails the test the whole contract will be struck out as unenforceable.

You can read more here : http://www.liv.asn.au/Practice-Resources/Law-Institute-Journal/Archived-Issues/LIJ-July-2015/Restraint-or-restriction-of-trade-

We at Michael R Coldham & Associates can review your employment contract you can email us at [email protected] for further information.