Nikki agrees to employ Ricky in her Ryde hairdressing salon. Most of her clients live within a two-kilometre radius from the business. A few live up to 10 kilometres away. The contract of employment envisages that Ricky may do beautician work, but beautician work is not currently carried out at Nikki's salon.

A clause of the contract states that, on the termination or expiry of his employment, Ricky 'must not operate or work in any business as a hairdresser, within a radius of one kilometre from the salon for five years, and as a beautician, within a radius of five kilometres from the salon for one year.'

After six months, Ricky resigns and immediately takes steps to set up his own hairdressing business 100 metres from Nikki's salon.

Advise Nikki on what basis she could do anything to stop Ricky's plans. (Refer to general law principles and statute). [25 marks]