QLD Restraint of work xCompany changing structure xRestraint of work and company changing structure i

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Nimeksha

Member
9 June 2018
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Hi, I work for a manufacturing company based in goldcoast. I work as a sales rep. Recently i received an offer for better benefits and resigned from my current employer. After 5 days of tendering my resignation the current employer announced that the goldcoast facility will cease its operations by end of june. Redundancy letters were given to all employee,s except me. A letter was sent to all customers informing that the products will be manufactured in sydney and there will be a sales and distribution centre in QLD. However the NSW company is a different company that has a different ABN to the Queensland based one. The letter further stated that the existing prices will match only if its economically feasible. The letter went on stating that the board of directors of the current employer has appointed another independent company to handle all other orders that cannot be serviced by NSW.

I received an email from my current employer that i will still be on restraint of work for 3 months from end of june and if i breach my contract the company may take legal actions against me. My restraint prevents me of canvasing or soliciting business from my current employer. How can i still be on restraint with the current changes of the current employer operations?

Appreciate your help.

Thanks,
Nimeksha
 

Rod

Lawyer
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27 May 2014
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Would need to read the contract/deed to look for assignment rights.

Restraint will generally only be effective for poaching/soliciting, not working.

Also the period would be x months from end of employment, not end of business.
 
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