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WA Restraint of Trade Clause in Employment Contract

Discussion in 'Employment Law Forum' started by Carl G Kirk, 20 April 2015.

  1. Carl G Kirk

    Carl G Kirk Member

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    Hello, I have a clause in my employment contract stating I can't work (should I leave my employer) for the other 3 major players in my industry, in the same geographical area. My industry is classed as an oligopoly & outside the other big three, there are only small independents.

    It states that if I was to leave for one of the named competitors, they can enforce, entirely at their discretion a period of up to 6 months, of "gardening leave". They say they will pay me for this period, however who is going to offer you a contract in the first place, if you can't work for 6 months?

    Any advice would be greatly appreciated.
     
  2. Rod

    Rod Well-Known Member

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    If you are being paid to not work for 6 months I don't see the problem. Take a holiday and enjoy life!

    BTW, does the clause cover the situation where you leave, take a break for say 4 weeks, then sign a new contract?

    Was going to suggest you work at a different location, but suspect as you are in WA, that you need to work in close proximity to the mines over there. Not much iron ore in Victoria.
     
  3. Carl G Kirk

    Carl G Kirk Member

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    Hi Rod

    Thanks for the reply, if it was that easy I would just do it tomorrow! :) However the company that is potentially offering me the job, will not wait 6m's for me to start work, nor will anyone else & my company knows this. Previously they didn't offer even to pay you but have probably put this in because someone has tested them previously.

    Are you suggesting that I resign from my current employer, wait 4 weeks then sign a new contract with who, the new company that is potentially offering the new job? Or leave, wait 4 weeks, resign with my current employer with a new contract (minus the onerous restraint clause) and then leave again?
     
  4. Rod

    Rod Well-Known Member

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    Yes, if the clause allows it.
     

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