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Daniel
Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 3317
Experience:  Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
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Im from Sydney, NSW and have a non-compete clause in my contract.

Resolved Question:

I'm from Sydney, NSW and have a non-compete clause in my contract. As of last month I have left the company. The clause is as below;

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14.2 From the day of completion the Employee covenants with the company to observe and perform and not to commit any breach of the restraints specified in clause 14.3. The Employee acknowledges and agrees that each of the restraints is reasonable as regards XXXXX XXXXX of the conduct restrained and the duration and scope of the restraint and that the restraints are reasonably necessary for the future protection of the business and goodwill of the company.

14.3 The Employee covenants with the company that after the term of employment:
(a) the Employee will not carry on or be engaged, concerned or interested, directly or indirectly, in the capacity specified in para (b) in the business specified in para (c) within the area specified in para (d) for the period specified in para (e).

(b) As:
(i) sole trader;
(ii) partner;
(iii) director or shareholder;
(iv) manager;
(v) employee;
(vi) agent; or
(vii) consultant;

(c) The business of provision of research and customized training, events and conferences to meet the professional development and networking needs of professionals.

(d) Within the following areas:
(i) Australia and New Zealand; or (if this is held to be invalid);
(ii) Australia; or (if this is held to be invalid);
(iii) New South Wales and Victoria and South Australia and Queensland; or (if
this is held to be invalid);
(iv) New South Wales and Victoria; or (if this is held to be invalid);
(v) New South Wales; or (if this is held to be invalid);
(vi) Within a 50 kilometre radius of the General Post Office in each of the
following Sydney and Melbourne and Adelaide and Brisbane; or (if this is
held to be invalid);
(vii) Within a 50 kilometre radius of the General Post Office in each of the
following Sydney and Melbourne; or (if this is held to be invalid);
(viii) Within a 50 kilometre radius of the General Post Office in Sydney

(e) During the following period commencing the day after the term of employment ends:
(i) 48 months; (if this is held to be invalid)
(ii) 36 months; (if this is held to be invalid)
(iii) 24 months; (if this is held to be invalid)
(iv) 12 months.

(f) The Employee separately enters into each of the covenants resulting from combining separately each of the capacities in para (b) with each business or activity (if more than one) in para (c) with each geographical area in para (d), with each period in para (e), with the company.

(g) Each of those covenants constitutes an independent and separate restraint imposed on the Employee under this deed.

(h) If any of those covenants is or will become unenforceable, that does not affect the validity and enforceability of the other covenants imposed under this Clause which remain binding on the Employee.

-----------------------------------------------

Based on the above have 2 questions.

1. If I start a company in Sydney or Brisbane where I deliver professional development but online only to professionals via Webinars only, targeting markets mostly overseas like US and Europe, which is not a product my old company offers and the markets they mainly cater for are AU and NZ, would I be breaching this non-compete agreement?

2. If I started the same Webinar company mentioned above in Singapore but work mainly from home in Sydney, will this still be seen as a breach of the non-compete agreement?
Submitted: 10 months ago.
Category: Australia Law
Expert:  Daniel replied 10 months ago.
Hello

Forget everything, with respect.

Non compete clauses are so very hard to enforce and extremely expensive, it would be difficult at best for them to enforce it.

I would strongly advise that you adhere to what you propose, as the 2 options you gave in any event does not give rise to any issue regardless.

Please accept.
Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 3317
Experience: Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
Daniel and 2 other Australia Law Specialists are ready to help you

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