• Commercial & Business Law

    Commercial & Business Law

    We are first and foremost commercial & business lawyers in Melbourne for people.  Our team will work with you to develop, manage and execute your business plan while ensuring you exploit opportunities, manage risks and achieve commercial success.  

    LEARN MORE
  • Dispute Resolution & Litigation

    Dispute Resolution & Litigation

    We are litigation lawyers in Melbourne specialised in commercial litigation and dispute resolution, we appreciate that resolving a dispute requires more than just following court processes. You can trust Taurus to be in your corner, and fight to deliver results.

     

    LEARN MORE
  • Property & Conveyancing

    Property & Conveyancing

    Enhanced by a wealth of experience, Taurus’ conveyancing lawyers in Melbourne can assist you with all of your conveyancing needs.

    Whether you are selling or purchasing your dream home, we are experienced in handling the conveyance to ensure the smooth settlement of your property.  We successfully perform all steps of your conveyance from reviewing or drafting the Contract of Sale through to confirming settlement has been completed with your real-estate agent.

    We are passionate about providing exemplary personal service to every client and understand that we are here to assist you during one of your most exciting and stressful transactions. We ensure that all of our clients are provided with regular updates and use our own portal allowing clients to login to view the progress of their transaction at any time.

    The conveyancing lawyers at Taurus are registered with PEXA and experts in their field.

    LEARN MORE
  • Intellectual Property

    Intellectual Property

    One of the most valuable assets of any business is its intellectual property. We as intellectual property lawyers Melbourne empower our clients to protect their brand, systems and confidential information by offering them a broad range of legal services related to their IP.

    LEARN MORE
  • Insolvency & Bankruptcy

    Insolvency & Bankruptcy

    We act on behalf of business lawyers, creditors, debtors, and insolvency practitioners in a variety of re-structuring and insolvency matters.

    LEARN MORE
  • Debt Recovery

    Debt Recovery

    We will recover your debts as if they were our own. For many owners, directors, and managers, debt recovery is one of the most confronting and challenging aspects of running a business. It is also crucial to the cash flow of the business, and therefore critical to its financial success.

    LEARN MORE
  • Employment Law

    Employment Law

    We help our clients meet the demands and challenges of managing their workforce.

    We have a team of employment solicitors can assist in any employment law matter ranging from drafting employment agreements to giving termination advice and handling unfair dismissal applications.

    LEARN MORE
ENQUIRE

Did you know that employment contracts can stop employees from working for competitors, even after they have resigned? A properly drafted ‘restraint of trade’ clause can impact employees long after they have changed jobs.

The main employment restraints are:

  • Confidentiality: an employee may be restrained from disclosing any secret or confidential information obtained during the course of employment. What is categorised as ‘confidential information’ will generally include the employer’s clients (and potential clients), suppliers, financials, systems, processes and trade secrets.
  • Non-Solicitation: the employer may prohibit the employee from approaching the customers, suppliers or employees of the company
  • Non-Competition: in some circumstances the employer may even be able to prohibit employees from working for competitors or in the same industry.

 

Are employment restraints actually enforceable?

 

Yes, restraints are enforceable if drafted correctly.

When enforcing an employment restraint, the court will consider the extent that it is ‘reasonably necessary’ to protect the employer’s legitimate interests. What is ‘reasonably necessary’ will depend on the wording of the clause and the facts of each situation. In particular, the court will consider:

  • The duration of the restraint. Generally, the shorter the restraint period, the more likely it will be enforceable;
  • The geographical location of the restraint. If the location of the restraint covers a large area (for example, all of Australia or the world), the court will be less likely to consider the restraint reasonable;
  • Whether the parties negotiated the restraint clause and whether they had equal bargaining power; and
  • The nature of the employer’s business and the employee’s role. The Court will be more likely to enforce a harsher restraint where the employee was senior or if the employee was also an owner of the business.

To overcome some of the above issues, employment restraints are generally drafted in a cascading fashion. This allows the court to ‘read down’ the clause until one of the restraints are considered reasonable.

 

As an employer, what can I do to ensure employment contracts are enforceable?

 

The first place to start is to make sure the restraint clause itself is drafted correctly. You can also make sure you regularly assess the needs of your company and what you reasonably need to protect. This may change with each employee’s position and the confidential information or client contact they have.

Should you need to dismiss an employee, you should take the opportunity to remind them of their employment restraints and their obligations post-termination. If the employee subsequently breaches their employment restraints, you should act quickly to demand that they cease.

For further information regarding employment restraints, please contact an Employment Solicitor at Taurus Legal Management team on 9481 2000.

 

Posted by Taurus Legal Management