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ARTICLE · 30 APRIL 2024

Time of reckoning for non-compete clauses

Non-Compete clauses are under attack from various quarters.

AustraliaEmployment and HR

Background

Non-Compete clauses are under attack from various quarters.

Broadly speaking, non-compete clauses are a form of post-employment restraint that prohibit an employee from working for a competitor of their previous employer for a specified period in a defined geographic area.

The rationale for non-compete clauses being imposed on departing employees is to protect the legitimate business interests of the former employer, usually confidential information and customer relationships. This protection of the former employer, however, needs to be balanced against the right and need of the former employee to ply their trade or profession and earn a living. This balance is why there is a question as to the enforceability of non-compete restraints, with courts called upon to adjudicate as to whether a non-compete restraint should be enforced against a former employee and, if so, to what extent (in terms of time period and geographic scope). A court will not

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For further information please contact:

Michael Byrnes, Partner
Phone: + 61 2 9233 5544
Email: [email protected]

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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