Posts: Restraints

When seeking to enforce a restraint, it is important that employers seek to enforce the restraint in a timely manner to prevent future or an ongoing breach. Any delay will be considered by the courts when assessing whether it is reasonable to enforce the restraint.

When it comes to drafting post-employment restraints in employment contracts, it is important for employers to consider the purpose of the restraint and whether or not the restraint reasonably serves that purpose.

BlueScope Steel Limited was successful in its urgent Federal Court of Australia application to prohibit a former employee from using or destroying its confidential information, including intellectual property and software.

Restraint of trade clauses are often used in employment contracts to prevent or limit an employee from engaging in conduct that is adverse or inconsistent with the employer’s interests once employment has ended. Typically, employees are restrained from soliciting clients or establishing competing businesses.