Undertaking "preparatory steps" to establish a competing business while still employed will rarely be considered a breach of fiduciary and contractual obligations, a full bench of the Fair Work Commission has highlighted, in refusing an employer's unfair dismissal appeal.
"Expedition and informality" are desirable in industrial relations litigation, but when it comes to termination settlements, "there can be no substitute for clearly recorded written terms of agreement", a commission has highlighted.
A mutually agreed termination couldn't later be characterised as a dismissal, even if the parties were in dispute about its terms, the Fair Work Commission has ruled.
An executive's acceptance of a mutual separation offer via email amounted to a binding settlement, even though he never signed the deed of release, the Fair Work Commission has found in throwing out his general protections dispute.
A court has awarded an employer $270k in damages after two of its employees left to establish their own business, in breach of their 12-month contractual restraints.
A court has granted interim orders restraining a senior manager from soliciting his former employer's clients and staff to join a competitor, after accepting evidence that the business might otherwise lose millions of dollars in revenue.
Ensuring that clients can freely choose who they work with was a crucial point in a court decision that refused to grant an employer's request for an interlocutory restraint order covering its departing employees.
Simply "responding positively" to an approach from a former client doesn't amount to solicitation, a court has highlighted, in refusing to restrain an employee accused of breaching his employment contract.
Banning non-compete clauses is a "sensible" move for some workers, however employers should be concerned if the changes go further than has currently been flagged, a lawyer says.
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