In December, The Supreme Court of New South Wales refused to grant an injunction to enforce a restraint of trade clause against an employee, even though the clause was found to be reasonable. In exercising its discretion, the Court considered the fact that the employee had been made involuntarily redundant, that he had a reasonable expectation that his employment was going to continue and that he would endure hardship by being out of his present employment (Ecolab Pty Limited v Stephen Garland [2011] NSWSC 1095).
It is therefore worth remembering that, in redundancy situations, restraint clauses will generally be unenforceable below the level of senior management.
For more information about this update or any other employment matters, please contact Tim Lethbridge or Kylie Wilmot on (08) 9321 3755.
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