Restraint of Trade
An employee can’t be restrained from being employed by an employer just because they dislike them or disprove of the relationship. An employee ought to be free to use their own skill and know how to earn a living.
If you have been told by a past employer that they disprove of your new employer and that they will try to stop you from taking up your new job, Call Us and Speak to an Expert today.
Queensland Workplace Law Specialise in Employment Law including Restraint of Trade.
Why is a written employment contract important?
For a restraint to be enforceable it must be reasonable. What is reasonable depends of the facts of a case. What is unreasonable is a universal restraint that prohibits all employment with all competitors. In seeking to enforce a restraint a past employer must be able to turn to a written employment contract that sets out the scope of the restraint.
What is Confidential Information?
Simply put its information that is not otherwise publicly available. For information to be confidential it ought not be publicly available. More often that not employees will have exposure to confidential information in the course of their employment. Examples of confidential information include pricing schedules, customer lists or computer codes. An employer has a legitimate interests in protecting its confidential information which may take the form of pricing schedules, customer lists, computer codes to identity of a supplier.
Does working for a competitor mean I’m going to use confidential information?
Not at all. An employee’s own skill and know how is enhanced by way of their employment. For example even just the accumulation of years working in a field of endeavour may result in an increase in the persons value in the employment market.
I’ve used confidential information, what should I do?
Caution needs to be exercised if a new position has been taken up with the intention of using a past employer’s confidential information. There are not many instances within which an employee can be personally liable in an employment relationship, however, this is one. The appeal of a new job, more money and higher status is attractive. If it is a condition of the new job that you will be expected to use your knowledge of a past employer’s confidential information, then speak with us immediately. If it is established that a past employer has suffered loss and it is able to attribute that loss to your unauthorised use of its confidential information then you may be personally exposed.
What should I do if I've been unfairly restrained from trade?
An employer can only enforce a restraint of trade clause if it is reasonably necessary to protect their legitimate business interests. However, whether a clause is considered reasonably necessary will depend on the facts of each particular case.
If you feel that you’ve been unreasonably restrained, our experienced lawyers can assist you navigate the law and find out what your next options are. Contact us online or call us for a free 30min call and consultation.
