The Dos and Don’ts of Signing a Non-Compete Agreement in WA

Non-compete clauses in contracts serve the purpose of safeguarding the business’s interests by making sure that an employee will not join a competitor, taking along trade secrets or recruiting employees from the rival company. Such agreements are legally complicated in Western Australia, as indicated by the employment laws in Perth.

It is always necessary to know your rights before signing, and a consultation with an experienced non-compete lawyer or employment law firm could help in preventing the imposition of unreasonable restrictions.

What is a Non-Compete Clause in Australia?

A non compete agreement Australia limits the ability of an employee to work or join a competitor after employment in order to safeguard business interests, such as client relationships and trade secrets. Such clauses are looked at with suspicion by the courts, being enforced only where they are reasonable in scope, term, and region, and they must be justified not by a mere aversion to competition.

That is why, before signing any employment agreement that suggests such a clause, it is necessary to address a lawyer who specialises in non-compete agreements.

The Dos of Signing a Non-Compete Agreement

1. Read the Entire Agreement Carefully

Before signing your non compete employment contract, read all its clauses very carefully. Pay attention to the following aspects:

• The limitation’s length (for example, half a year, one year)
• The area of prohibition (for example, only in Perth or the whole of Australia)
• The category of work or industry involved.
• Additionally, any punishment for agreeing to the limitation.

2. Do Consult a Lawyer Before You Sign

You should always use an employment lawyer to go through your contract and then sign it before making an agreement. A qualified non compete agreement lawyer will be able to establish the enforceability of the clause under the WA law and recommend changes that may favour your interests.

3. Understand What is Reasonable

The application of a non-compete clause by courts in Western Australia can only be enforced in instances that are deemed reasonable. That means:

• The time limit must not be very long.
• The geographic area must not encompass areas where your previous employer does not operate.
• The term must be directly connected with keeping confidential information or client relations.

4. Do Keep a Copy of the Agreement

It is essential to have a signed copy of your non compete employment contract so that you can use it in future. This will play a significant role in case of disagreement over what has been agreed upon or when your employer attempts to enforce the clause at some point in future.

The Don’ts of Signing a Non-Compete Agreement

1. Not All Clauses Are Enforceable

Most of the employees think that everything in their contract is legally binding, but that is not always the case. Certain non-compete agreements are so general that the courts cannot enforce them.

When one of the clauses denies you an opportunity to engage in any other related business in the entirety of Australia over the coming few years, then it would be considered unreasonable. By consulting non compete lawyers Perth, you will be sure that you do not sign a contract that goes beyond what is allowed by the Australian laws.

2. Do Not Break the Clause When You Quit Your Job

Although you may have a feeling that your clause is not fair, violation of the clause without consultation can be very disastrous. Your employer may sue you and demand damages or an injunction to stop you from working in another place.

Instead, consult the best employment lawyers in Perth before any action is taken. They will be able to negotiate with your previous employer on your behalf or petition to have the clause held void.

3. Never Neglect After-Employment Requirement

In addition to non compete clause Australia, your contract may also cover confidentiality, intellectual property or non-solicitation clauses. These still stand valid in case of termination of employment. Knowing these other obligations assists you in preventing accidental violations that may result in a lawsuit.

4. Do Not Hurry Signing

Never put your signature on a non compete employment contract when you are pressured. When your employer wants you to sign on the spot, ask to have time to consult someone. Any hasty action would limit your employment opportunities or subject you to unwarranted litigation. If you hire an employment lawyer prior to signing, you are assured that you have all your rights covered.

Conclusion

One should not sign a non-compete agreement in a hurry. These provisions may have long-term effects on your professional mobility and future employment.

Knowing the dos and don’ts, and getting a knowledgeable non-competition lawyer Perth or a reputable employment law firm will help avoid any unreasonable restrictions and, at the same time, safeguard your professional integrity. Never sign any non-compete employment agreement without first reading it, posing questions, or seeking the advice of a professional.