IN BRIEF
Employers have struggled in the past to find ways of restraining
a former employee from setting up in competition and from
soliciting their clients and their goodwill in the absence of a
dedicated restraint of trade covenant contained in the
employee's contract of employment.
However, a recent decision of the Federal Court of Australia in
APT Technology Pty Ltd v Aladesaye [2014] FCA 966 (5
September 2014), seems to have come to the aid of employers in this
situation, by determining that the "springboard
principle" can apply to former employees in certain
circumstances.
THE SPRINGBOARD PRINCIPLE
The springboard principle was considered in the United Kingdom
in a case of Terrapin Limited v Builder's Supply Company
(Hayes) Limited [1967] RPC 375. Briefly stated, in that case
the defendant manufactured prefabricated portable buildings
according to the design of the plaintiff. In order to manufacture
these portable buildings, the defendants had received
