Usually, restraint of trade clauses are enforced by way of
injunction. However, a trainee accountant has been ordered to pay
his ex-employer the sum of AUD$188, 495.65, plus costs and
interest, for breaching a restraint that contained a liquidated
damages clause.
The employee signed a restraint that prohibited him from
providing certain accounting services for three years after his
employment ended to clients of the employer for whom he had worked.
The liquidated damages clause provided where the employee breached
the restraint, he had to pay 75% of the fees incurred by the
particular client for services rendered.
The employee left the employer to take up part-time employment
with both a major client of the employer and a competing accounting
firm. Then, after requesting quotes from both firms, the major
client terminated its retainer with the ex-employer and engaged the
competing firm to perform its accounting services. The employee
then commenced providing
