Scenario 2 Case Study Akshita and Underground Solutions Pty Ltd

Akshita runs a construction company called Underground Solutions Pty Ltd (US) that specialises in tunneling.

Every employment contract at US contains the following clause:

No employee can use the same skills employed at Underground Solutions Pty Ltd at any other firm operating in Australia for ten years after finishing a role at Underground Solutions Pty Ltd.

Two of Akshitas employees, Lin and Dimitri, decide to leave the company and hand in their notice. Akshita learns that Lin has accepted a new job at Grow Tall Pty Ltd (GT), a construction company that specializes in designing and building new parks and public spaces. Dimitri, meanwhile, has accepted an offer at Long Way Down Pty Ltd (LWD), a competing tunneling firm. US, GT, and LWD all operate across Australia and have local, state, and federal governments as their primary clients.

Akshita wishes to enforce the above clause against her former employees.

Can Akshita enforce the above clause against her former employees? How can she might structure similar clauses in the future to prevent them being challenged? Please use case law to support your answer.

Note: Research is required for this scenario. You may rely on the course materials to answer this question, but it is expected that you also research beyond the course materials. Please restrict your answers to the application of contract law (and, specifically, the content of Topics 3 & 4).

Suggested word count: 500-600 words.

THE QUESTION IS IN BOLD TEXT