| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2013] NZERA Auckland 564 |
| Hearing date | 30 Oct 2013 |
| Determination date | 10 December 2013 |
| Member | R Larmer |
| Representation | R Harrison ; S Wilson, A Sinclair |
| Location | Auckland |
| Parties | Reekie v Blackfoot New Zealand Ltd |
| Summary | RESTRAINT OF TRADE – Respondent sought variation of restraint of trade provision (“ROT”) – Applicant provided two months’ contractual notice of resignation – Applicant on garden leave for last 24 days – Applicant set up own business to compete with respondent – Previous Authority determination found ROT unreasonable and unenforceable – Parties directed to mediation – ROT too long – DISPUTE – Parties disputed whether applicant prohibited from soliciting respondent’s clients under ROT – Media manager |
| Abstract | AUTHORITY FOUND –;RESTRAINT OF TRADE: Inappropriate to leave respondent without limited restraint to protect proprietary interest. ROT should be modified to become reasonable and enforceable. Inappropriate to redraft ROT to reflect different periods for different clients. No contractual right to place applicant on garden leave. Twelve month restraint reasonable and enforceable. Applicant still entitled to receive referrals. No restriction on applicant dealing with media to capitalise on particular strength. ROT modified to eleven months and seven days. Application granted.;DISPUTE: ROT did not preclude solicitation and applicant merely prohibited from undertaking work for specified clients of respondent. Question answered in favour of applicant. |
| Result | Application granted ; Orders made ; Question answered in favour of applicant ; Costs reserved |
| Main Category | Restraint of Trade |
| Statutes | ERA s164;Illegal Contracts Act 1970 s8 |
| Cases Cited | Air New Zealand Ltd v Kerr [2013] NZEmpC 153;Pottinger v Kelly Services (New Zealand) Ltd (2012) 10 NZELR 1;Rekkie v Blackfoot New Zealand Ltd [2013] NZERA Auckland 521 |
| Number of Pages | 9 |
| PDF File Link: | 2013_NZERA_Auckland_564.pdf [pdf 231 KB] |