| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Christchurch |
| Reference No | [2012] NZERA Christchurch 47 |
| Hearing date | 12 Mar 2012 |
| Determination date | 19 March 2012 |
| Member | H Doyle |
| Representation | K D Hastie (in person) ; K McLenaghan |
| Location | Christchurch |
| Parties | Hastie v Truescape Ltd |
| Summary | RESTRAINT OF TRADE – Applicant claimed restraint of trade clause unreasonable – Parties’ employment agreement (“EA”) included 12 month non-solicitation clause – Applicant claimed length of clause excessive – Applicant confirmed did not have client lists or other confidential information belonging to respondent – Authority found scope of clause wide and as applicant employed for only short period likely applicant unaware whether potential customer also respondent’s customer - Found therefore scope of clause unreasonable due to applicant’s very short employment – Found clause unreasonable as not limited to particular geographical area – Found duration of clause unreasonable and three month duration more appropriate due to applicant’s position and length of employment – Found parties attempted unsuccessfully to resolve issue at mediation – Found remedy other than modification of clause neither inappropriate nor adequate - Ordered duration of non-solicitation clause in parties’ EA be reduced to three month period - ARREARS OF WAGES – Applicant sought unpaid performance bonus – Applicant claimed not paid performance bonus on pro rata basis from when employment started – Parties disputed applicant’s sales figures – Respondent’s sales figures showed applicant had not met sales targets and ineligible for performance bonus – Authority found applicant not entitled to performance bonus - No arrears of wages - Business Development Manager |
| Result | Application granted (restraint of trade) ; Orders accordingly ; Application dismissed (arrears of wages) ; No order for costs ; Disbursements in favour of applicant ($71.56)(filing fee) (quantum to be determined)(travel costs) |
| Main Category | Restraint of Trade |
| Statutes | ERA s162;ERA s164;Illegal Contracts Act 1970 s8 |
| Number of Pages | 7 |
| PDF File Link: | 2012_NZERA_Christchurch_47.pdf [pdf 32 KB] |