NSW Restrictions on Employment Contract - Seek Legal Representation to Negotiate?

[Rebeccamcmanus]

Hi,

I'd like some help as to whether I need to seek representation from a lawyer.

I have been offered a job with a competitor and would like to take the position as it brings more scope to my professional career. I have been employed for 5 years with my current employer as a senior sales consultant and in my employment contract, there is a 3-month non-compete clause restricting me from working for the competition.

As we can't financially afford this loss of income and considering the niche sales market that I work in (cosmetic injectables), I am seeking help as to the negotiation regarding payment for the 3 month time period.

I am willing to adhere to the time period but I can't afford not to earn. I really don't want to challenge this in court if at all possible.

Do employers pay to keep you away form working during this time under Employment Law?

I have read various articles and it seems that the court has no legislation surrounding this and they have to take it on a case by case basis.

 

[Rod]

Much depends on the terms of you contract and the amount you are earning. For instance, if you are only earning $50k per year the court would more than likely side with you. If you are on $200K+ per year and is above average for your position I suspect the court would side with your employer.

Other than the non-compete clause saying the period is 3 months, are there any other clauses referring to the non-compete restriction?

 

[Rebeccamcmanus]

Thanks, Rod.Yes, my earnings are well above $50k, not as high as $200k though. I think I will be fighting a losing battle by the sounds of it...

 

[Serge Gorval]

^ Not necessarily.

It all depends on the terms of the restrictive covenant clause. Courts are generally reluctant to enforce broad clauses that refrain you from being employed.

Would need to see a copy of the clause to help further.