Question
Hone is the owner of a successful business (MCH), which provides mobile computer help services to the Wellington region. Bill is one of MCH's best
Hone is the owner of a successful business ("MCH"), which provides mobile computer help services to the Wellington region. Bill is one of MCH's best employees. Bill has established good relationships with several repeat clients who always ask for Bill when they call. Recently Hone has been worried that Bill might be thinking about leaving. He thinks that if Bill goes to work for his main competitor in the Wellington region ("Techhelp SOS") it could seriously damage his business. Hone has drafted the following restraint of trade agreement which he is planning to ask all his current employees to sign. "I agree that for a period of one year after leaving MCH I will not work for any mobile computer help service in the North Island" He wants to know if his proposed restraint of trade agreement will effectively protect his interests.
Required: Refer to relevant law and discuss Hone's proposed restraint of trade agreement. Advise him on the likelihood of it being enforced as it is and make suggestions as to how he might improve it.
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