Restrictions OK
Jurisdiction Employment Relations Authority - Auckland
Reference No [2017] NZERA Auckland 114
Hearing date 12-Apr-17
Determination date 13 April 2017
Member R Larmer
Representation R Towner ; C Patterson
Location Auckland
Parties HP New Zealand Ltd v Keogan
Summary RESTRAINT OF TRADE – Parties sought determination whether non-compete restraint in respondent’s employment agreement should be reduced from 12 to 6 months – INJUNCTION – Applicant sought injunction preventing respondent from breaching non-competition restraint should modification be granted – Commercial Account Manager
Abstract AUTHORITY FOUND –;RESTRAINT OF TRADE: Applicant had legitimate proprietary interest capable of being protected by post-employment restraint. Non-compete restraint should be upheld notwithstanding confidentiality obligations respondent agreed to observe. Appropriate for Authority to exercise power to modify restraint from 12 to 3 months.;INJUNCTION: Application for injunctive relief granted.
Result Applications granted ; Term reduced from 12 to 3 months ; Costs reserved
Main Category Restraint of Trade
Statutes ERA s162 ; ERA s164 ; ERA s164(a)(i) ; ERA s164(a)(ii) ; ERA s164(b) ; ERA s164(c) ; ERA s164(d) ; Illegal Contracts Act 1970 s8 ; Illegal Contracts Act 1970 s8(1)(b)
Cases Cited Faccenda Chicken Ltd v Fowler & Ors [1985] 1 ALL ER 724;Fletcher Aluminium Ltd v O’Sullivan [2001] 2 NZLR 731 (CA);Lansing Linde Ltd v Kerr [1991] 1 ALL ER 418;Transpacific Industries Group (NZ) Ltd v Harris [2013] NZEmpC 97;Warmington v AFCO New Zealand Ltd [2012] NZEmpC 19, [2012] ERNZ 1
Number of Pages 19
PDF File Link: 2017_NZERA_Auckland_114.pdf [pdf 219 KB]