The Tribunal will balance the restriction with the commercial interests of the party intending to apply the non-competition clause. SAI Global sought an injunction from the NSW Supreme Court to prevent Mr. Jones from working for Perfect Portal or InfoTrack until the final hearing. The ISC wanted to enforce the non-competition and non-invitation clauses in its employment contract for a period of six months. If you are doing business or employing staff, it is helpful to check whether a non-competition clause is appropriate or appropriate. To do so, you should determine the likelihood that the other party will accept such competition bans. A non-compete clause helps protect a company`s interests by preventing the party from using confidential information and from conducting certain competitive activities. Below are some examples of situations in which a contract may contain a non-compete clause: the non-compete clause can only apply to certain professional roles or denominations. Has the employee`s role changed since the contract was signed? If an employer has not updated its agreements to reflect these changes, the clause can no longer apply. The following questions can help you determine whether a non-compete clause is necessary: a non-compete clause is intended to prevent a party from using confidential information, intellectual property (IP) and its general know-how to compete with the company with which it no longer has a contractual agreement. However, these restriction clauses can only be applied in Australia if they are deemed appropriate to protect the legitimate business interests of the party benefiting from the clause. A non-competition clause prevents a party from performing competitive activities, including employment.
The attempt to impose an inappropriate non-competition clause is contrary to the public policy of a market economy. This may prevent a party from participating in the economy. A provision may be inappropriate if it prevents a party from offering its skills or other business activities. For example, the non-competition clause may apply for 12 months, or if 12 months are not reasonable, it is six months. Also last year, ASX`s Monash IVF tried to prevent her outgoing star physician Dr. Lynn Burmeister for a year. The case ended with Dr. Burmeister agreeing to practice outside Melbourne during the 12-month non-competition clause. A court may split certain sections of a clause if it considers the clause (or part of the clause) to be inappropriate. As a result, many non-competition bans are cascading.