Sunday, 24 October 2010

Restraint of Trade Decision(and other stuff)

The NSW Court of Appeal handed down its decision in the OAMPS case on Thursday.This was an appeal by an employee who had lost his case in the Supreme Court against his former employer.

His former employer had taken action against him for breaching his employment contract which had provided for a restraint clause to stop him being able solicit or work for clients of the former employer in his new employment.

The restraint clauses were complex and provided, on a cascading basis, for retraints from 15 months down to 12 months and with a geographic location anywhere in Australia, down to the state of NSW.

The employee had alleged that these cascading clauses were confusing and thus should be struck out.The Judge who first heard the case disagreed and said that it was a reasonable clause and was binding.

The employee appeal and lost again in the Court of Appeal.

The effect of this is that the employer was able to stop the employee from working for clients of the business for the 12 month period.This is further evidence to refute the theory that "restraints are not worth the paper they are printed on". A properly drafted restraint will be able to protect your business by stopping former employees poaching client and staff and is a "must have" clause in most employments contracts.

We will send out a more detailed analysis of this case in the coming days.

Now, onto the NFL tips. Last week both TK and I had 7 picks each so his lead stays at 5.The 49ers beat the spread unfortnuately, but I did win my $5 on the Steelers beating the Browns by more than 13(Yay!).

Now TK and I both agree that the "sure thing" for this week is the Falcons who are at home an only giving 3.5 to the overrated Bengals.Get on them, I say!

And lastly, a big congrats to both the SF Giants and the Texas Rangers for making the World Series this year.The Giants have not won a title since 1954, before they moved out from New York to the Bay area and the Rangers are in the WS for the first time.A particular congrats go to the Rangers for taking down the team with the biggest payroll and that everyone loves to hate-the New York Yankees.As a Redsox fan I was doubly pleased!

Both teams were not given a chance at the beginning of the year so its great to see them there.

I reckon it will be Giants in 7 games, led by its outstanding young pitching-should be a fun series.

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