Restraint of Trade

Updated 25 September 2026

A typed letter lying on a desk

The Problems People Bring to Us

Restraint clauses restrict what you can do after you leave: who you can work for, where, which clients you can deal with, and what information you can use. People come to us when:

  • They want to move to a competitor and are unsure whether their restraint stops them.
  • They want to start their own business in the same field.
  • They have received a cease and desist letter from a former employer, sometimes threatening an urgent injunction.
  • They are accused of taking confidential information, such as client lists, files or emails, or of approaching clients or staff.
  • An employer wants to protect its business from a departing employee.

In Australia a restraint is generally unenforceable unless it goes no further than is reasonably necessary to protect the employer's legitimate interests. Many clauses are written as a "cascade" of options, and the court's approach turns on the clause, the role and the facts. That makes early advice valuable.

How We Help, Stage by Stage

First Discussion

We ask about your role, what you had access to, where you are going, and what you have been told or sent. If you have received a letter demanding a response or undertakings, we deal with its deadline first.

What you get: immediate advice on what not to do, and on any urgent deadline.

Reviewing Your Documents

We read the restraint and confidentiality clauses, the rest of your contract and any later agreement, and the correspondence from the employer.

What you get: our view on how far the restraint is likely to reach, and where the risk lies.

Advice on Your Options

That might be proceeding as planned, adjusting the new role, negotiating a narrower undertaking, or seeking a release. We explain the risks of each.

What you get: a practical plan that lets you get on with your working life while managing the risk.

Negotiating

We respond to the former employer, answer allegations, and where appropriate negotiate limited undertakings instead of the broad ones first demanded.

What you get: a firm, measured response from a lawyer, on your behalf.

The Court

Restraint disputes are heard in the courts, often on an urgent basis. If proceedings are threatened or started, we advise you on your position and represent you.

Settlement and the Deed

Where a dispute resolves, we document the agreed undertakings, the release, and what each side may and may not say.

What to Bring to the First Conversation

  • Your employment contract and any later agreement containing restraints or confidentiality terms
  • Any letter or email from your former employer or its lawyers
  • A description of your old role and your new role or business
  • A list of any company property, devices or files you still hold (do not delete anything before you speak to us)

How We Have Helped

An employee who had started their own business received a cease and desist letter from their former employer, alleging breaches of their non-compete and non-solicitation clauses. We advised on how far the clauses were likely to reach, responded to the allegations, and negotiated a resolution recorded in a deed.

An employee resigned to join a competitor and was accused of mishandling confidential information on the way out. We advised them on what their obligations actually required of them in the new role, and dealt with the former employer's lawyers on their behalf.

Every matter is different. These examples are general and do not indicate the outcome of any other matter.

Talk to Us

If you have received a restraint letter, or are about to resign to compete, speak to us first. Call (08) 9470 2777 or contact us online for a free and confidential initial discussion about your restraint.

Read more: Employment Restraints · Employment Contract Review