Akshita runs a construction company called Underground Solutions Pty Ltd (US) that specialises in tunneling.

Every employment contract at US contains the following clause:

“No employee can use the same skills employed at Underground Solutions Pty Ltd at any other firm operating in Australia for ten years after finishing a role at Underground Solutions Pty Ltd.”

Two of Akshita’s employees, Lin and Dimitri, decide to leave the company and hand in their notice. Akshita learns that Lin has accepted a new job at Grow Tall Pty Ltd (GT), a construction company that specializes in designing and building new parks and public spaces. Dimitri, meanwhile, has accepted an offer at Long Way Down Pty Ltd (LWD), a competing tunneling firm. US, GT, and LWD all operate across Australia and have local, state, and federal governments as their primary clients.

Akshita wishes to enforce the above clause against her former employees.

Can Akshita enforce the above clause against her former employees? How can she might structure similar clauses in the future to prevent them being challenged? Please use case law to support your answer.

Answer rating: 100% (QA)

Advice for Akshita on whether she can enforce the above clause against her former employees is that ... View the full answer