• Commercial & Business Law

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    We are first and foremost lawyers for business 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.  

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  • Dispute Resolution & Litigation

    Dispute Resolution & Litigation

    Specialists in commercial 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.


    Service includes:
  • Property, Construction & Conveyancing

    Property, Construction & Conveyancing

    Enhanced by a wealth of experience, Taurus’ conveyancing lawyers in Melbourne can assist businesses with everything from managing leases, to complex property development projects.

  • Intellectual Property

    Intellectual Property

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

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    Insolvency & Bankruptcy

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

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    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.

  • Employment Law

    Employment Law

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

    Our team can assist in any employment law matter ranging from drafting employment agreements to giving termination advice and handling unfair dismissal applications.


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 enforcable?


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 the Taurus Legal Management team on 9481 2000.


Posted by Taurus Legal Management