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.
