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3 things you need to know about a non-compete clause

A recent case making its way through the courts is raising questions about when employers can prevent current or former employees from going to work for a competitor through a non-compete clause.

The widely held perception is that you can’t restrain a person through a non-compete clause, says Hannah Ellis, principal and cofounder of The Workplace Employment Lawyers in Sydney. However, she says there are times when it’s appropriate to work non-compete clauses into an employee’s contract.

But the big question is: Will these hold up? Ellis says you will need to ask three important questions to make sure you get your non-compete clause right.

Have a legal question? Or a topic you want covered? Let Hannah know by tweeting to  @theworkplace_au or visit her website and blog by clicking here. Check back for more advice on how to handle HR’s most common legal concerns.

Check out AHRI’s social media pages on Twitter, LinkedIn and Facebook for more. And don’t forget to follow HRM’s editor Amanda Woodard on Twitter @HRMeditor for updates about what’s happening in the HR industry around Australia.

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