Will a restraint of trade clause prevent my lead developer joining a competitor?

Post-employment restraints are only enforceable in Queensland if they go no further than is reasonably necessary to protect a legitimate business interest, such as trade secrets or highly confidential algorithms, following the High Court in Stenhouse v Coleman. Because courts will strike out an unreasonable restraint entirely, startups must use cascading restraint clauses providing multiple alternative periods and geographic scopes. Utilizing a garden leave clause during the notice period is often a more effective immediate protection.

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Read our Complete Startup Legal Guide for Queensland