Job hunting? Before you accept that new job and hand in your notice, make sure you check whether there is a restraint of trade clause in your current employment contract.
It is common in New Zealand to see restraint provisions in employment contracts that limit your ability to work for a competitor after leaving your job. These clauses are designed to protect commercially sensitive information.
Usually, a restraint of trade clause will only apply for a certain timeframe and often within a specific geographical area. For example, you may not be able to work for a competitor based in Auckland (or start a business in Auckland that will compete with your employer) within six months of leaving your role.
It’s wise to review your contract before you start job hunting, particularly if it has been several years since you last looked over the contract.
Note: This post is brief and general in nature. You should not treat it as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this post. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this post.
