Can Your Employer Stop You From Working Elsewhere?

In the fast-paced career world today, it is not unusual for specialists to pursue other career opportunities or side ventures. But are your managers legally entitled to prevent you from working for another organisation? The answer typically falls under the non-competition clause employment contract.

In Western Australia, these provisions present multiple legal issues that must be easily graspable to workers before signing or violating a contract.

Understanding a Non-Competition Clause

A non-competition agreement (or non-compete clause) is a condition of a contract that does not allow an employee to work in a competitor firm or start a similar business within a specific period after leaving the current job. Employers include such provisions in their hiring agreements to safeguard business interests, confidential information, and their relations with their clients.

Such conditions differ by industry, position, and geography and prove challenging to implement under Perth employment law. Where you do have such conditions, it is strongly recommended that you consult non-compete agreement lawyers or the best employment lawyers in Perth.

Are Non-Compete Clauses Enforceable in Western Australia?

They are enforceable, but Australian courts will closely examine them. A non-compete clause in Western Australia is not automatically enforceable. The employer needs to establish that the clause is reasonable with regard to:

• Timeframe: For how long does it last?
• Geographical area: How broad is the geographical scope area: city-wide, state-wide, or country-wide?
• Scope of activities: Is the provision too broad in scope regarding job titles or businesses?

If it is found that the limitation is too severe or unreasonable, judges may invalidate it. So, if you’re worried about restrictions on what you can do in your future career, seek advice from employment lawyers Perth WA, to explain your situation.

Typical Scenarios: How Employers Can Prevent You from Working Abroad

The following are some of the everyday situations in which a non-compete clause could be utilised:

• Leaving a Job to Move to a Rival Company: When you suddenly decide to jump ship to another competitor firm in the same sector, the employer may argue that you are going against the employee non-compete agreement.
• Starting Your Business: Staff with inside information or client lists with intentions to start a competing business may be prevented under their current non-compete contract in Western Australia.
• Freelancing or Side Businesses: Even if you are still employed, your non-compete employment contract can prevent you from freelance work for competitors or industry clients.

The justifications for such restrictions are typically to protect confidential information, customer lists, and business secrets. These provisions, however, have to be reasonable and justifiable in terms of employment law Perth standards.

Challenging a Non-Compete Clause

All non-competition clause employment agreements are not enforceable in court. You may challenge a clause if:

• The time restriction is unfairly lengthy (i.e., longer than 12 months).
• The geographic scope is unfairly enormous.
• The employer is unable to establish a valid business interest that must be protected.

If you are in this situation, non-compete lawyers Perth can determine if the clause is enforceable under the law and guide your options and rights.

Pursuing Legal Counsel Before Signing

Before signing a non-compete employment contract, independent legal advice is necessary. Perth employment lawyers can outline:

• What you are and are not able to do when leaving employment.
• How you can negotiate better terms.
• What will you lose if you break the clause?

Sometimes, unknowingly, workers reduce their future career opportunities by signing unfair contract conditions without proper evaluation. Don’t let that be your case—contact the top employment lawyers Perth WA, prior to signing something that may affect your future.

What If You’ve Already Signed the Agreement?

If you are already under a non-compete agreement and you have another job or freelance prospect in mind, you are not yet in the dark. You may be able to negotiate an out of the agreement or question its enforceability with the assistance of a non-compete agreement lawyer.

Some employers will also sign off on waiving restrictions if there isn’t a direct conflict of interest. Do not take a risk, and consult a lawyer. The consequences of breaching an enforceable term can be very severe, such as litigation, monetary consequences, or even denial to serve any other person.

Conclusion

In Western Australia, employers are allowed to include non-competition clauses in employment contracts; however, it does not mean that the employment contracts will be enforced. They must be fair, just and in good commercial interest.

When you are not certain of your rights or the contract conditions, you can seek the professional advice of Employment Lawyers Perth so that you are well-informed when making decisions. Do not put your future at risk; be aware of your rights and protect yourself.