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ARTICLE · 01 SEPTEMBER 2011

Using employee restraints to protect your business

Protecting employers from past and present employees.

AustraliaEmployment and HR

Article by Jon Greenaway

With more options now for protecting client relationships, the staff they have trained and the intellectual property they have developed, what practical measures can businesses take to prevent current and past employees undermining them?

Recent developments in Australian common law have led to a position where a restraint in a workplace contract may be enforceable where it is reasonable and necessary to protect the goodwill of the business.

The prima facie position under law is that employee restraints are not enforceable, but there is now more room to move according to workplace relations experts.

There is, therefore, value in strengthening measures employers have in place to protect their intellectual property and customer relationships and to prevent the poaching by other employers of key staff.

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