02 May 2015
Is there a restraint of trade prohibition at law on ex-employees poaching clients if there is no written employment agreement containing a restraint of trade clause?
There are implied contractual duties that apply during employment, such as the duty of good faith and fidelity, the duty of trust and confidence and also, for executives and senior management, those statutory obligations under the Corporations Act 2001: see AMP Services Ltd v Manning (2006).
There is no common law doctrine of unfair competition in Australia. No restraint of trade clause means no protection. There are no halfway houses in this area of practice.
If the ex-employees' conduct occurred post employment, there is no recourse for the employer.
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