Question
Scenario 2 Yukiko, Lee's older sister, lives in Perth in Western Australia. Yukiko works as an associate project manager for ROVERS Pty Ltd., an amphibious
Scenario 2
Yukiko, Lee's older sister, lives in Perth in Western Australia. Yukiko works as an associate project manager for ROVERS Pty Ltd., an amphibious vehicle manufacturer that sells its vehicles to both commercial and military customers in Australia and worldwide. ROVERS was one of five companies competing for a Commonwealth defence force contract worth over $5m, however it was unsuccessful and the contract was offered to one of its competitors, Hydrotech. Yukiko had been working for ROVERS for over three years, but when the board of Hydrotech approached her about taking up a similar role with their company, she felt torn, as the salary was lucrative and the contract was for 6 years; 2 years longer than her contract with ROVERS, which was about to run out.Yukiko decides to bite the bullet and take the opportunity, so she signs the contract with Hydrotech. When ROVERS finds out about Yukiko's defection to one of its main competitors, they inform Yukiko of a clause in her contract with ROVERS.The employment contract included restraint clauses which provided that Yukiko must not:
- Solicit or compete for the custom of, or accept business from, any person who was a customer of the Company at any time during the one year immediately preceding the termination of the Employee's employment;
- Solicit or endeavour to obtain the services of any professional person who was an employee, consultant or contractor of the company at any time during the one year immediately preceding the termination of the Employee's employment;
- Engage in, be involved in, or be associated with, a business competing with the business of the company (anywhere in the world) in the capacity of an employee or contractor for 10 years upon resigning from the post with ROVERS.
Yukiko had also entered into to a confidentiality agreement restraining her from disclosing confidential information for the duration of employment and for a period of 10 years thereafter.
ROVERS claimed that Yukiko's intimate knowledge of its research and development, as well as close relationship with its customers, amounted to confidential information that could be misused against ROVERS.
Yukiko does not believe that the restraints are reasonable, but is also aware of a Supreme Court of Western Australia case that is similar to her situation. She comes to you for advice.
Advise Yukiko. Use IRAC
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