Breach Of Non Compete Agreement Australia
Trade restrictions are not a rare feature of employment contracts, particularly those involving senior and high-level executives, but to what extent should your organization consider imposing an offence or imminent violation, and what factors will a court consider in its decision (as a rule, whether or not there is a defect)? Are you afraid that your competitor will rob you of the best employees? The best strategy, of course, is to make these employees too happy, to leave. Realistically, you can also ask them to sign non-competition bans. Workers oppose these agreements and many believe that this is an illegal restriction on trade. Nevertheless, the courts have recently upheld reasonable restrictions to protect both confidential information and the client base. What`s reasonable? That is the question, and that is why you need legal advice and the drafting of a company like Owen Hodge Lawyers. If you want to protect the value of your business and consider asking potential employees to sign non-compete agreements, or if an employee has ever worked in clear violation of a non-compete agreement for a competitor, you agree to consult us. We can be reached on 1800 770 780 or contact us. To be applicable, a non-competition clause must be considered appropriate in terms of duration and scope and protection of the employer. A restriction should be no more restrictive than necessary to protect the legitimate business interests of the employer. Since the restrictions are contractual, an employer must prove that it has been harmed in violation of a trade clause. Damages are not awarded if the violation does not cause harm to the employer. Some non-competition agreements may violate Australian competition law A court may split certain sections of a clause if it considers that the clause (or parts of the clause) is inappropriate.
As a result, many non-competition bans are cascading. A non-competition clause prevents a party from performing competitive activities, including employment. The attempt to impose an inappropriate non-competition clause is contrary to the public policy of a market economy.