What Is a Restraint of Trade?
Employment agreements may include restrictions concerning competition, solicitation or dealing with clients, solicitation of staff, interference with business relationships, use of confidential information, geography and time periods.
The effectiveness of a restraint depends on its drafting and the particular circumstances.
Protecting Legitimate Business Interests
Potentially protectable interests can include confidential information, customer relationships, trade secrets, intellectual property, workforce stability and goodwill.
How We Help
We draft and review restraint provisions, advise when key employees resign, assess suspected breaches and assist with disputes involving confidential information, client solicitation and employee solicitation.
Restraints in Employment Contracts
Restraint clauses should be considered at the time the employment agreement is prepared, rather than only when the employee leaves. The restrictions should reflect the employee’s actual role and access to important business relationships or information.
Non-Compete Restraints
Non-compete provisions seek to restrict certain competitive activity after employment. They can be contentious and should be drafted with careful attention to the interests the business is seeking to protect.
Non-Solicitation of Clients
Client non-solicitation clauses may be particularly important for employees who develop strong customer relationships on behalf of the business.
Confidential Information
Confidentiality obligations can operate separately from restraints and may protect sensitive commercial information such as pricing, customer data, strategy and internal business information.
When a Key Employee Resigns
Employers should promptly review the employee’s contract, identify access to confidential information, secure business systems and understand any relevant client or staff relationships.
Suspected Breach
If a former employee appears to be approaching customers, recruiting staff or using confidential information, early assessment can help determine what evidence should be preserved and whether action is required.
Restraints and Senior Executives
Senior employees may have extensive access to strategy, customers, staff and confidential information. Their contractual protections should reflect that level of responsibility.
Supporting Employers Across the Sunshine Coast
We assist Sunshine Coast employers with restraint drafting, departures and post-employment disputes.
Frequently Asked Questions
When should an employer seek legal advice?
Early advice is often most valuable before a significant workplace decision or process is finalised.
Can Saines Legal assist before action is taken?
Yes. We can review the circumstances, documentation and proposed process and help identify potential employment law risks.
Do you assist businesses throughout the Sunshine Coast?
Yes. We assist employers across Maroochydore, Mooloolaba, Buderim, Birtinya, Kawana, Caloundra, Noosa, Nambour and surrounding areas.
Speak With a Sunshine Coast Employment Lawyer
Contact Saines Legal to discuss your workplace matter with a Sunshine Coast employment lawyer.