The Federal Court of Australia has recently granted an interim injunction restraining a former employee from canvassing, soliciting or dealing with any client of the former employer, despite the lack of a restraint of trade clause in the employment contract.
Restraint of Trade
A recent decision of the Federal Court of Australia relating to an unfair restraint of trade clause in a contractor’s agreement has found that the Court may have the authority to retrospectively vary a contract. This finding may have a significant impact on employers, leading the way in making compensation payable for an employer’s conduct relating to a contract which was altered retrospectively.
When valuable senior employees resign, carrying with them all their accumulated knowledge and experience with the company, employers may find themselves caught between a rock and a hard place. How best to protect the company’s interests is a vital question which arises.