Restraint of Trade (Non-compete) and Confidential Information
It is a very serious matter when an employee breaches a restraint of trade (also known as a noncompete) clause.
This issue arises when an employee has entered into specific obligation employment contract not to do such things as start their own business in opposition to their employer, or poach staff from that employer or, in some circumstances, even work for a competitor for a period of time.
A well drafted restraint of trade clause and employment contract will have a good chance of being enforceable. There is a very large body of case law where the courts have considered the enforceability of a restraint of trade clause. Every case is different.
We can assist you with providing advice about drafting restraint of trade clauses or represent you in circumstances where the employee has sought to take your client database or poach your employees otherwise start a business when they had promised not to do so.
We are experienced in bringing injunction applications against rogue employees to stop the offending behaviour by restraining them from working from an employer or operating their own business, for example with a previous employer’s database (being confidential information). Employers can be successful in these types of claims even in the absence of an employment agreement so if you are in circumstances where you don’t even have an employment agreement in place, so it is still worth seeking our advice because there may be other common law options open to you to rely upon in pursuing the rogue employee.