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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43735
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I work in Sydney nsw as an insurance broker and due to

Customer Question

Hi, I work in Sydney nsw as an insurance broker and due to commence new employment shortly. I have a 12 month restraint period with my former employer and will obviously not solicit any clients. However, my question is whether clients are allowed to contact me and if they so choose move across to my new employer? My previous employer did not provide me with a company mobile phone and I was allowed to use my own personal phone which I did not receive any financial compensation for. This no. was on all corro given to clients including my business card, emails etc and that phone leaves with me. I have already had clients call me since I ceased employment and expressed their wish to move with me. I don't want to get into any legal battles so want to know where I stand in this regard before I allow clients to sign a letter of appointment to move to my new employer. Look forward to your advice.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Afternoon

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

I they contact you and you take them you would be in breach.

You will get into trouble.

You should met them know you cannot assist them or get permission from your former employer.

Customer: replied 1 year ago.
Hi Leon, this surprises me. Can you please provide more detail as to why I would be in breach?
Expert:  Leon replied 1 year ago.

Good Afternoon

Are you able to send me the clause and I can be more detailed.

Customer: replied 1 year ago.
Hi leon, attached here is the clause. The restraint period is 12 months from last day of employment.
Expert:  Leon replied 1 year ago.

Good Evening

It is clear you cannot do anything to have a client leave them.

It says you cannot assist a client. So if they call you and you then have them come to your new job that would fall under the definition of assist.

Any actions that result them losing work by you or third parties referring them to you is a breach.

I am surprised that you agreed to 12 months In your industry 3 - 6 months is the usual because there are many that do the job and there is competition.

If you are contacted and they come to you, then you have to wait and see what the employer does. If they send you a letter saying you are in breach then prepare for a court case if you dont stop.

I have just completed a case where it cost my client $30,000.00 to fight it and we settled. It took 9 months of going back and forth to court drafting Affidavits and arguments.

In my opinion you face the possibility of a court action even if they contact you.

I hope this makes sense and is of assistance. If there is nothing further

thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards

Leon