A restraint of trade clause, is a clause inserted into an employment contract, which restrains an employee from working in a certain area, for a certain period of time. This employment contract clause may operate both while the employee is working for the employer, and after.
In Just Group Ltd v Peck,[1] the Supreme Court of Victoria (“the Court”) found that a restraint of trade clause in an employee’s employment contract was unreasonable and as a result, unenforceable. The restraint imposed by the employer in the employment contract, prevented the employee from working for 50 other brands. The Court found that the restraint of trade clause in the employment contract was far too broad and was therefore unreasonable. [...]