
In an ideal situation, the relationship between the employees of a company and the proprietors should be ethical. The company dealing in a particular product or service trains its workers so they can work with the existing workers and serve the organization’s interest.
However, some people use the company’s techniques, skills, and information to open a competing business and maliciously eat into their profits. The Australian legal system enables employers to enter into a non-compete clause for this matter.
However, the law is complex and requires the involvement of the most experienced employment lawyers in Perth WA, to ensure justice for the deserving parties. Here, we have discussed the most crucial aspects associated with this clause.
A non-compete clause is a legal agreement mentioned in the work contract of a worker that comes into action when the employee isn’t associated with the business any longer. The Australian judiciary system supports creating competition but is against using unethical and plagiarised ways to exploit someone’s genuine assets.
The non-compete agreement creates a level playing field for the competitors in the market. So, hiring the best non-compete lawyers in Perth to draft the agreement would always be more fruitful. It can prevent the employees from commandeering their ex-company’s resources to start a business using their confidential info, and soliciting their clients.
The workers who have signed the non-compete agreement your employment law lawyers have drafted are restricted from offering similar services for a certain period and within a particular geographical location. This arrangement creates one less factor the hiring company has to worry about: appointments and policies.
However, any agreement crossing the ‘legitimate business interests’ of the company may not be enforceable. So, discussing it with the most experienced employment lawyer in Perth before proceeding with any legal matter concerning non-compete laws is always best.
An Australian proprietor’s ‘legitimate business interests’ are justified by important data with limited access to protect their business, occupation, and goodwill. Examples of factors that come under the shield include:
The answer to this question is broad and cannot be given in a defined way. Generally, non-compete agreements are binding, which means that they are applicable whenever a worker leaves the company. Whether they have resigned, stopped coming to work without information, or been sacked by the employee company is immaterial.
However, you must remember that the court may not accept every agreement clause as safeguarding the company’s interests. They will surely test and consider its rationality while deciding whether it should be enforced. First, the agreement must be reasonable in scope and include the geographic space, duration, and type of work. The employer or their employment lawyers in Perth WA, will have to the legitimacy of their business interest in court.
The court can invalidate the non-compete agreement due to the following reasons:
in conclusion, it is crucial to note that it’s correct to let an employer protect their confidential data ethically, but the law also has to be just for the fired employee. So, whether you are a business owner or a worker – consulting the most skilled employment lawyers Perth WA, will be helpful in the long run.
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