Two recent decisions of the NSW Supreme Court have shed further
light on the court's approach to enforcing post-employment
restraints.
In Red Bull Australia Pty Ltd v Stacey [2011] NSWSC 1212, the
court granted an injunction to restrain two former executives from
competing with their former employer even though the restraint
period was due to expire the following month. This decision shows
that the potential inconvenience suffered by the former employee is
not superior to a former employer's right to enforce the
restraint. To ensure certainty, any deeds of release entered into
with former employers should clearly particularise which
obligations will be ongoing.
In Ecolab Pty Limited v Stephen Garland [2011] NSWSC 1095, the
court granted an interlocutory injunction that partially enforced
post-termination clauses, the consequence being that a former
manager was able to continue to work for a competitor of the former
employer. The decision shows that it may be more
