NSW Employment Contract - Setting Up My Business While Still Employed?

[shak r]

I'm a full-time/permanent employee of a famous tech company, and planning to partner with couple of friends and make our own tech startup.

For family reason and as I still need to look after my family and need an stable source of income, I don't want to resign at the moment, and planning to continue with my full-time job during the office hours and work on our startup after-hours.

We will register a company (ASIC) and will get ACN, and I will legally own part of shares of our startup.

The nature of our startup and the services we will provide are not in competition with my current employer.

I reviewed my employment contract and there are lots of clauses than ban me from being part of any activity (on my account or third party) that compete with my current employer.

1- Considering that fact that the services our startup provides are not in competition with my current employer, is it legally ok to establish my company?

Also, there is one clause in my contract that worrying me:

" In this position you are required to provide your services exclusively to the Company and the Group throughout your employment."

2- Does the above clause means I cannot do any kind of work (regardless if it's in competition or not) simultaneously while I'm still employed?

3- And finally, do I legally obliged to inform my current employer about my startup? (I couldn't find any thing in my contract that can answer this question!)

I really don't like to let my current employer know about it as it might cause lots of misjudgement

Would appreciate any helpful answer.

Thanks a lot

 

[Rod]

1. There is nothing stopping you establishing your own company. The issue is what happens with your current employment contract.

2. Seems that way. Keep in mind there is no context around the clause you provided so I can't be entirely sure.

3. You can obtain the employer's consent to start up your own business. May not receive the consent, and you may be put on a 'first off' list. Think carefully before acting.

 

[Adam1user]

To add to Rod's comment, how is your relationship with the management in your work place? How is the work environment, do you put long hours? if so, this can give an indication that you will work from 9 to 5 and head out?

Even if your start up company may not be in competition, but what about the knowledge and know how gained from employment, this may be one key point they will look at.

There are many factors to consider and you are the only person who can answer that.

Hope this helps.