| Restrictions | OK |
|---|---|
| Jurisdiction | Employment Relations Authority - Auckland |
| Reference No | [2011] NZERA Auckland 301 |
| Hearing date | 21 Jun 2011 |
| Determination date | 11 July 2011 |
| Member | K J Anderson |
| Representation | R Singh ; R Pillay (in person) |
| Location | Hamilton |
| Parties | R K Trading (2003) Ltd v Pillay |
| Summary | BREACH OF CONTRACT – RESTRAINT OF TRADE – Applicant sought enforcement of two clauses in employment agreement against respondent – Respondent worked for applicant under work permit – Applicant offered respondent new employment in anticipation of respondent’s application for renewing work permit – Respondent signed accompanying employment agreement – Applicant’s offer of employment subject to respondent renewing work permit by specified date – Respondent did not obtain work permit in time – Parties agreed respondent to cease employment at applicant’s store – Respondent obtained employment in another store – Applicant claimed respondent in breach of two clauses in employment agreement – Authority found claim had no chance of success as employment agreement conditional on respondent obtaining work permit and after respondent failed to obtain one parties agreed to end relationship with no further obligations owed – Found in any event two clauses unenforceable – Found first clause unenforceable as required applicant to remain in employment for set period and in conflict with termination clause – Found restraint of trade clause unenforceable as no proprietary interest to protect and three year term unreasonable – Found respondent not in breach – Store Manager |
| Result | Application dismissed ; No order for costs |
| Main Category | Breach of Contract |
| Cases Cited | Airgas Compressor Specialists v Bryant [1998] 2 ERNZ 42 |
| Number of Pages | 4 |
| PDF File Link: | 2011_NZERA_Auckland_301.pdf [pdf 16 KB] |