| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | AA 124/01 |
| Determination date | 03 September 2001 |
| Member | R A Monaghan |
| Representation | RL Towner ; D Mackinnon |
| Location | Auckland |
| Parties | New Zealand Office Products Ltd v Howard |
| Summary | RESTRAINT OF TRADE - Application to enforce restraint of trade - Approached by competitor while employed by applicant - Resigned and completed notice period on garden leave - Commenced employment with competitor despite 6 month restraint of trade clause - Alleged restraint of trade not part of contract because no consideration given - Alleged forced to accept clause - Restraint of trade was supported by consideration - No opportunity to obtain independent advice before signing contract - Failure to observe obligations did not affect validity of agreement - Conduct did not amount to unfair bargaining - Entitled to protect trade secrets, trade connections and confidential information - Restraint of trade of unreasonable duration - Reduction to 4 months appropriate - Restraint enforceable in modified form - Sales manager |
| Result | Application granted ; Restraint of trade clause modified ; Costs reserved |
| Statutes | ERA s64;ERA s64(3);ERA s68;ERA s68(3);ERA s162;Illegal Contracts Act 1970 |
| Cases Cited | Cain v Turners and Growers Fresh Ltd [1998] 3 ERNZ 314;Dillon v Chep Handling Systems Ltd [1995] 2 ERNZ 282;Gallagher Group Ltd v Walley [1999] 1 ERNZ 490;Stenhouse Australia Ltd v Phillips [1974] AC 391;United Food & Chemical Workers Union of NZ v Talley [1993] 2 ERNZ 360 |
| Number of Pages | 9 |
| PDF File Link: | aa 124_01.pdf [pdf 67 KB] |