WA Restraint of Trade Clause in Employment Contract

Australia's #1 for Law
Join 150,000 Australians every month. Ask a question, respond to a question and better understand the law today!
FREE - Join Now

Carl G Kirk

Member
20 April 2015
2
0
1
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.
 

Rod

Lawyer
LawTap Verified
27 May 2014
7,195
969
2,894
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.
 

Carl G Kirk

Member
20 April 2015
2
0
1
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.

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?
 

Rod

Lawyer
LawTap Verified
27 May 2014
7,195
969
2,894