This series navigates the often complex legal landscape of restraints of trade.
Restraint of trade clauses involve a tension between protecting business interests and preserving competition and job mobility in the market. Not all clauses will be enforceable.
However, when used appropriately, restraints can offer important safeguards for business interests. This can include protecting goodwill, customer relationships and confidential information.
Katherine Stewart (Senior Associate) and Andrew Henshaw (Managing Director) offer insights into the application and enforcement of restraint clauses within employment contracts and commercial contracts like sale agreements. The discussion provides an overview of the legal principles and practical considerations businesses should keep in mind when including restraints in their contracts.
This episode lays the groundwork by considering the role of restraints in protecting business interests. Katherine and Andrew discuss different types of restraints in employment and commercial contexts. The discussion provides an overview of restraint principles, the different protections restraints can offer, and what happens if there is a breach.
Katherine and Andrew look at some recent cases that highlight how restraints of trade are interpreted and enforced by the Courts. The discussion considers a case where well drafted post-employment restraints ultimately fell down because the business did not come to court with clean hands. It also touches on the commercial context and two cases where restraints did and didn’t prevent a former business owner from competing after a sale transaction.
This final episode broadens the discussion to explore the interaction of restraints of trade with other areas of law, including the protection of confidential information. It offers practical tips for businesses managing risk when a departing employee seeks to take clients or information to springboard a new venture. Andrew and Katherine also look ahead and consider potential reforms that could impact the use of non-compete clauses in Australia.
This podcast in no way constitutes legal advice. It is general in nature and is the opinion of the author only. You should seek legal advice tailored to your individual circumstances before acting on anything related to this podcast.
If you enjoyed this episode and have a question or suggestion for future episodes, we’d love to hear from you. Email us here.
Move your business forward with Explain That. Reduce your risk, and seize opportunity.
Join 'Explain That', where Australian professionals get monthly insights from Velocity Legal.