It is often the perception of employers that post employment
restraints are not an important aspect of employment contracts.
Nothing could be further from the truth. Post employment restraints
that restrict employees from undertaking work for clients whether
personally or as employees of a third party are regularly upheld by
courts.
Recently, a restraint that was put in place by an employer
prohibiting an employee from working anywhere in Australia in their
industry was upheld by the Supreme Court. This resulted in the
former employee having to pay his former employer over half a
million dollars in damages for taking a key client.
Post employment restraints are a key aspect to any employment
contract where staff have regular customer contact or develop an
intimate knowledge of the key workings of your business.
