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Restraints of trade enforced in trucking industry…

A recent Employment Relations Authority decision has enforced, on an interim injunction basis, restraints entered into by a senior management employee of a trucking company who subsequently left and was engaged by a rival company.

The employee agreed to a 12 month restriction on working for a competing company within 150kms.  He obtained work for another trucking company based outside the 150km zone, but the new company also carried out trucking work inside the 150km restricted zone.

The ERA has upheld the restriction on the employee being involved with any work that crosses into the 150km zone, and also upheld the restriction on attempting to solicit clients of the former employer.

The employee is allowed to carry on working for the new employer for clients whose work is outside the 150km zone.

If you need assistance with restraint provisions or enforcement give me a call.