Restraint of trade

The Tasmanian Supreme Court has upheld a 6 month stat wide restraint of trade and in doing so it has rejected a claim by the former employee that the restraint was void for uncertainty and unreasonableness.
Justice Blow held that it was clear that the employer company had sought to impose a restraint which was to apply for a maximum of six months, extend throughout the State and prevent the employer, a former branch manager, working for or being involved in any competing business.
 
The judge also ruled that the employment contract provided sufficient detail about time, geographical and categories of sale activities for him to hold that the clause was not void for uncertainty.
 
Justice Blow said the employer was entitled to seek to protect its confidential information saying “All of the information that I have referred to can properly be regarded as confidential information belonging to the employer, knowledge of which could be used to the advantage of a competitor and to the detriment of the company’s business,” the judge said.
 
Bulk Frozen Foods Pty Ltd v Excell (2014) TASSC 58 delivered on 3 November 2014