ARTICLE · 22 MARCH 2012

Seven Network succeeds in enforcing restraint clause in employment contract

Colin Biggers & Paisley

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The employment restraint clause was reasonable but only as long as needed to protect commercially sensitive information.

AustraliaEmployment and HR

Sarah Hedger

In brief - Employment restraint reasonable but only as long as needed to protect commercially sensitive information

In Seven Network (Operations) Limited v Warburton (No 2)[2011] NSWSC 386, the Supreme Court of NSW determined that the employer had the right to enforce a restraint of trade clause in an employment contract and prevent a senior executive from joining a competitor before the end of his contract period.

Warburton bound by lengthy and cascading post-employment restraint periods

The plaintiff, James Warburton, was employed by Seven Network (Operations) Limited as a senior executive. He was highly regarded and seen as the natural successor to Seven's Chief Executive Officer, David Leckie.

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