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ARTICLE · 14 DECEMBER 2010

Time to review restraint clauses – Are your restraint clauses enforceable?

Norton Rose Fulbright Australia
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A recent decision in the NSW Court of Appeal, Hanna v OAMPS Insurance Brokers Ltd [2010] NSWCA 267 has put restraint of trade clauses back on the agenda for employers by demonstrating that properly drafted restraint clauses can protect employers from former employees seeking to poach clients.

AustraliaIntellectual Property
Michael Serong
Michael Serong
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Key Points:

A recent decision in the NSW Court of Appeal, Hanna v OAMPS Insurance Brokers Ltd [2010] NSWCA 267 has put restraint of trade clauses back on the agenda for employers by demonstrating that properly drafted restraint clauses can protect employers from former employees seeking to poach clients.

In the OAMPS case the employer succeeded in obtaining orders that prevented Mr Peter Hanna (Hanna) from canvassing, soliciting, dealing with, counselling or procuring listed clients or assisting another to do so for a period of 12 months after ceasing employment.

This gave OAMPS a realistic opportunity to retain the clients' business as their policies came up for renewal annually.

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