Yi lives in Launceston in Tasmania. Yi is a general manager at a large wholesale food retailer, LoadUp Pty Ltd (LU). Yi has been working with LU for eight years, however recently she has become interested in sustainability and feels that too many of LU's suppliers do not sufficiently address issues of sustainability in their supply chains. For example, LU is the largest distributor in Tasmania for

Yellowfin Tuna from the Indian ocean through one of its large suppliers in India. Stocks of this tuna in the Indian Ocean have been severely depleted due to overfishing. Yi is determined to join the push for sustainability, so she decides to join another smaller wholesale food distribution company in Hobart, Sustain Foods Pty Ltd (SF). When LU become aware that Yi has signed an employment contract with SG, they point to the terms of her employment contract with LU. The employment contract included the following terms which provide:

The Employee covenants with the Employer that the Employee will not carry on or be engaged, concerned or interested, directly or indirectly, in the capacity specified in para (A) in the business specified in para (B) within the area specified in para (C) for the period specified in para (D).

(A) As:

(i)sole trader;

(ii)partner;

(iii)director or shareholder;

(iv)manager;

(v)employee;

(vi)agent; or

(vii)consultant.

(B) The supply of foods of a similar kind to the business of the employer

(i)Sale by wholesale of frozen foods

(ii)Sale by wholesale of chilled foods

(iii)Sale by wholesale of ambient foods

(iv)Sale by wholesale of fresh produce

(v)Sale by wholesale of meat

(vi)Sale by wholesale of seafood

(vii)Sale by wholesale of any product in competition with the employer

(C) Within the following areas:

(i)100 kilometres of the Launceston Post Office

(ii)100 kilometres of the Burnie Post Office

(iii)100 kilometres of the Hobart Post Office

(iv)100 kilometres of the Devonport Post Office

(v)100 kilometres of the Queenstown Post Office

(D) During employment and for 5 years after completing employment with the Employer.

Yi had also entered into a confidentiality agreement restraining her from disclosing confidential information for the duration of employment and for a period of 10 years thereafter.

LU claim that Yi's intimate knowledge of its products, pricing strategies and close relationship with its customers, amounted to confidential information that could be misused against LU by its competitors.

Yi does not believe that the restraints are reasonable, but LU believes that the restraints should be enforceable and is also aware of a Supreme Court of Tasmania case that is similar its dispute with Yi. LU comes to you for advice.

Advise LU.

Please cite case law in your advice.

Note: Research is required for this scenario. The unit materials WILL NOT be sufficient to score a high grade in response to this scenario.