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ARTICLE · 17 AUGUST 2008

Restraint Of Trade

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Seeking to restrain a former employee from competing with their former employer is a controversial area of law.

AustraliaAntitrust/Competition Law
Richard Ottley
Richard Ottley
Emma Powys
Emma Powys
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Seeking to restrain a former employee from competing with their former employer is a controversial area of law. A properly constructed restraint may provide a level of protection against an employee who seeks to work in direct competition with their former employer or who attempts to seize its customers, suppliers or staff. A restraint must operate within the competing interests of the employer's right to protect their business and the employee's freedom to compete, work and earn a livelihood. The success of restraints depends largely upon whether the restraints as applied to an employee, are no more than what is reasonable to protect the employer's legitimate business interests.

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