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WA Will Restraint of Trade Apply Upon Termination of Contract?

Discussion in 'Employment Law Forum' started by Boomer, 15 October 2016.

  1. Boomer

    Boomer Member

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    I currently subcontract, set up as a business partnership, to person 'Y`who has a contract with business `X'. Business X has decided to terminate the contract with person Y and hire full time employees. They have since contacted me and offered to hire me as a full time employee.

    My questions is, if my non-compete clause or restraint of trade would come into play? I am not starting a competing business nor am I working for a competing business. It is a sales job so there are no trade secrets or any special information. All customers are also supplied by business X. The sole role of person Y was to oversee sales performance and hire subcontractors to sell.

    I have signed a non compete as a part of my employment contract with Person Y and it is very vauge in terms of limiting me working in any way, shape or form for any competing business with a 2 year exclusion from termination of contract.

    But I am confused if it applies to this situation.

    Please help.
     
  2. Iamthelaw

    Iamthelaw Well-Known Member

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    In short, no - Most restraint of trade clauses are held to be unenforceable.

    If you should have any issues seek legal advice with the aim to obtain a declaration from the court that the restraint of trade in unreasonable.
     
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  3. Boomer

    Boomer Member

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    What's more, I have also received an email from the person I subcontract to saying that my original contract is superseded by a profit share contract we signed more recently. This contract has no restrictions noted whatsoever.

    They have done this as my notice on the profit share is 1 month where as it is 2 weeks on the original contract. Does this help nullify the original non-compete as well?
     

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