Restraint of trade clauses in contracts of employment have never
been more enforceable, particularly in Victoria.
In brief: Restraint of trade clauses in
contracts of employment have never been more enforceable,
particularly in Victoria.
What you need to know:
- Employers need to provide justification of the level of
restraint documented
- Each situation is different and restraints of
trade should be tailored to the position and level of employee in
terms of length, duration in time and scope of restricted
activity
- The validity and details of the restraint in an employment
contract is determined at the date the employment agreement is
entered into
It has been well settled at common law that restraints of trade
applying to the activities of former employees, are prima facie
"void" or unenforceable, as contrary to public
policy.
