Sometimes you will employ someone who is essential to your business and you would be sorry to see them go. These people are “key workers” and difficult to replace. You might want to consider a restraint clause in their employment contract, which discourages them from leaving quickly (longer notice period) or stops them from immediately working for a competitor.
Restraint clauses are designed to protect your business but must go no further than necessary. A common legal difficulty is when the effect of a restraint clause is unreasonable. Courts want to see a balance between your right to protect your business and the key worker’s right to make a living in the same field or industry.
While restraint clauses are useful for retaining key workers, there are no hard and fast rules for creating them. You are wise to seek advice before putting them into employment contracts.
Employsure can advise you on retaining your key workers lawfully. For peace of mind, please call our 24 hour Advice Line now on 1300 651 415.