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"Coordinated scheme" to poach clients warranted restraining ex-employees

An employer has won injunctions restraining two former employees accused of soliciting its clients to a competitor, with the Federal Court finding it needed protection from their "coordinated scheme".

While not involving a recruitment company, the case illustrates the factors and evidence courts will weigh up in deciding whether to enforce contractual restraints.

The employees, who had been the main advisors at specialist broker Fortrend Securities, resigned from the company in November last year and joined competitor Shaw and Partners after their four-week notice periods had ended.

About a week later, Fortrend began receiving requests from clients wanting to transfer to a new broker...