TechHR
ex
L&D
UNPLUGGED
Sphere
About Us • Contact Us
People Matters ANZ
People Matters Logo
Login / Signup
People Matters Logo
Login / Signup
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

 

 

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
  • About Us
  • Advertise with us
  • Become a sponsor
  • Contact Us
  • Feedback
  • Write For Us

Follow us:

Privacy Policy • Terms of Use

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

People Matters Logo
  • Current
  • Top Stories
  • News
  • Magazine
  • Research
  • Events
  • Videos
  • Webinars
  • Podcast
Login / Signup

Categories:

  • HotTopic
    HR Folk Talk FutureProofHR
  • Strategy
    Leadership Csuite StrategicHR EmployeeRelations BigInterview
  • Recruitment
    Employer Branding Appointments Permanent Hiring Recruitment
  • Performance
    Skilling PerformanceMgmt Compensation Benefits L&D Employee Engagement
  • Culture
    Culture Life@Work Diversity Watercooler SheMatters
  • Tech
    Technology HR Technology Funding & Investment Startups Metaverse
Can you prevent former staff from working for your rivals?

News • 21st Jul 2022 • 2 Min Read

Can you prevent former staff from working for your rivals?

Employee Relations

Author: People Matters Editorial Team People Matters Editorial Team
2.6K Reads
A Federal Court ruled against restricting employees from working for their employer's competitors. Here's why.

A Queensland Federal Court justice has rejected United Petroleum’s bid to prevent a former employee from taking a job with a rival company. 

Justice John Snaden ruled against United Petroleum’s request to keep a former wholesale manager from working for a direct competitor IOR Petroleum. United Petroleum cited a restraint-of-trade clause as the basis for their request. 

However, Justice Snaden deemed the enforcement of the restraint as going beyond protecting legitimate commercial interests.  

Invoking restraint of trade clause

United Petroleum alleged that the manager had accepted the job at a rival in the aviation fuel market. This was an area that United Petroleum CEO David Szymczak said they also had planned to expand into.

In his evidence to the court, Szymczak claimed that as a senior employee, the manager was aware of United Petroleum’s  commercial strategies related to the expansion.

However, the manager pointed out that United Petroleum was not in the business of marketing or supplying aviation fuel and that, even if the petrol company did, he said he was not involved in any of those functions while working there.

In his ruling, Justice Snaden said United Petroleum’s restraint-of-trade clause appeared “to trespass beyond what was necessary to protect legitimate commercial interests”. He added that the clause did not require the worker to confidential information – only “the advantage it might afford if possessed”.

Read more: How to quit your job gracefully

Victory for workers

United Petroleum is not the only employer to have a restraint-of-trade clause for its workers. Giri Sivaraman, a principal at Maurice Blackburn, told the AFR that the clause was “very commonly demanded by employers in employment contracts”.

“Employers rely on their superior bargaining power and the implied threat of litigating on the clauses to keep employees from working for competitors rather than the actual legality of the clauses,” Sivaraman said.

“The judgment shows that a clause that goes beyond protecting legitimate commercial interests shouldn’t be enforceable ... it’s a message to employers that you can’t just put in a broad restraint clause and expect compliance.”

Justice Snaden’s ruling is viewed as a significant win for employees who have been kept from working elsewhere due to the restraint-of-trade clause.

Read More

Did you find this article helpful?


You Might Also Like

The end of non-compete for low and mid-income

NEWS • 25th Mar 2025 • 3 Min Read

The end of non-compete for low and mid-income

Employee Relations#EmploymentLaw
Remote employees less likely to see pay hikes

NEWS • 17th Dec 2024 • 2 Min Read

Remote employees less likely to see pay hikes

Compensation & BenefitsEmployee Relations#HRTech#HRCommunity
Amazon orders staff back to office

NEWS • 17th Sep 2024 • 3 Min Read

Amazon orders staff back to office

LeadershipEmployee Relations#HRTech#RemoteWork#HRCommunity
NEXT STORY: Immigration New Zealand: More employers seek accreditation

Trending Stories

  • design-thinking-hr

    Skype is dead: Did Microsoft's leadership let a billion-doll...

  • design-thinking-hr

    From copy-paste to creative spark: mastering generative AI i...

  • design-thinking-hr

    Keeping the C-suite in the C-suite - how do we reduce execut...

  • design-thinking-hr

    Return to office: the legalities

People Matters Logo

Follow us:

Join our mailing list:

By clicking “Subscribe” button above, you are accepting our Terms & Conditions and Privacy Policy.

Company:

  • About Us
  • Advertise with us
  • Become a sponsor
  • Privacy Policy
  • Terms of Use

Contact:

  • Contact Us
  • Feedback
  • Write For Us

© Copyright People Matters Media Pte. Ltd. All Rights Reserved.

Get the latest Articles, Insight, News & Trends from the world of Talent & Work. Subscribe now!
People Matters Logo

Welcome Back!

or

Enter your registered email address to login

Not a user yet? Lets get you signed up!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

People Matters Logo

Welcome! Let's get you signed up...

Starting with the absolulte basics.

Already a user? Go ahead and login!

A 5 digit OTP has been sent to your email address.

This is so we know it's you. Haven't received it yet? Resend the email or then change your email ID.

Let's get to know you better

We'll never share your details with anyone, pinky swear.

And lastly...

Your official designation and company name.