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NSW Restraint of Trade on Employment Contract - Enforceable?

Discussion in 'Employment Law Forum' started by Fredaroony, 20 March 2017.

  1. Fredaroony

    Fredaroony Active Member

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    My wife is a massage therapist and she recently started a new job that asked a ridiculous employment contract stating if she left she could not work at another massage business within 10klms for one year after ceasing employment.

    She is hardly going to reveal any trade secrets by working elsewhere. I highly doubt this would be enforceable anywhere plus there are spelling mistakes it in haha...."Sate of New South Wales"

    I took a couple pictures of the wording but blanked the business name out.
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  2. Lance

    Lance Well-Known Member

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    Hi,

    These types of restraint clauses are more about the employers fear of you taking clients when you leave than loosing trade secrets. In most cases the restraint clause is not enforceable because people need to be reasonably free to pursue any lawful trade or employment they want.

    In these cases the restraint clause is usually viewed as unreasonable and not viewed as having a legitimate interest to protect. They may have grounds if you took clients with you. Speak with a lawyer and they can confirm this before you sign.
     
  3. Fredaroony

    Fredaroony Active Member

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    Thanks Lance, she already signed it even though I told her not to and now she wants to leave there after 3 weeks. English is not her first language and she didn't understand what it was.
     
  4. SamanthaJay

    SamanthaJay Well-Known Member

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    Apart from that, they can't make her give 14 days notice if she's worked there a year or less. Is she casual or permanent?
     
  5. Fredaroony

    Fredaroony Active Member

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    She is only casual
     
  6. SamanthaJay

    SamanthaJay Well-Known Member

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    Then she doesn't need to give notice, just like they wouldn't need to give her notice if they decided to terminate her employment.
     
  7. Tim W

    Tim W Lawyer
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    We answer questions of this type frequently.
    You may find a keyword search of the archives helpful.
     
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  8. Fredaroony

    Fredaroony Active Member

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    Hi Tim,

    I did actually search first for restraint but did not find a whole lot for NSW.
     
  9. Tim W

    Tim W Lawyer
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  10. Fredaroony

    Fredaroony Active Member

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