Share on LinkedInShare on LinkedIn

ARTICLE · 07 AUGUST 2019

Can I stop a former employee working for a competitor?

Article highlights the importance of a carefully considered and drafted restraint of trade clause in a contract of employment.

AustraliaEmployment and HR

In brief - The answer may depend on when and how well you have drafted your restraint of trade clause in the employment contract

Employers frequently ask us if they can prevent an employee from working for a competitor after the employee resigns. While it depends on the facts of each individual case, a carefully considered and drafted restraint of trade clause in a contract of employment may achieve this outcome. Unfortunately, most clauses we see are invalid and unenforceable because legal advice has not been obtained on this technical area of law at the time of entering into the contract.

Wallis Nominees v Pickett case example

The well-known Victorian decision of Wallis Nominees (Computing) Pty Ltd v Matthew William Pickett [2012] VSC 82 demonstrates the limits of restraint of trade clauses and the consequences of poorly drafted clauses. In that case, the employee (Pickett) was employed by the employer (Wallis Nominees) as an IT specialist. Pickett had a

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from