NSW Employment Restraint for a Year

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johnpage

Member
23 March 2020
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0
1
Hi, This is the restraint on my employment contract, "On termination of you employment it is a requirement that you shall not work within the car rental industry, in direct competition with Jim Car Rentals Pty Ltd either on or within 100 kms of Sydney for a minimum of 1 year"
I have been working for this company for 7 years, now I want to start my own car rental service in Sydney. Do I have to wait for a year to start my own business?
Please guide me on this.
Thanks in Advance.
 

Rod

Lawyer
LawTap Verified
27 May 2014
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Setting up in business is different to becoming an employee in another business.

If wanting to be an employee in another car rental business then chances are you can, as long as you do not approach customers of your previous employer.

Starting a business is harder to answer . If the extent and reach of each business overlaps, it is more likely a restraint can be seen as valid. But without seeing a full contract and knowing more about each business it is not possible to give a yes or no answer.
 

johnpage

Member
23 March 2020
2
0
1
Setting up in business is different to becoming an employee in another business.

If wanting to be an employee in another car rental business then chances are you can, as long as you do not approach customers of your previous employer.

Starting a business is harder to answer . If the extent and reach of each business overlaps, it is more likely a restraint can be seen as valid. But without seeing a full contract and knowing more about each business it is not possible to give a yes or no answer.
Thanks Rod