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Newly recruited manager proposed to do "exactly" what contract prohibited: Court

After hiring two employees from a competitor, HR software company Elmo has won one dispute and lost the other over whether the post-employment restraints in their contracts were reasonable.

The case highlights the factors courts will consider when determining the reasonableness of contractual restraints, in relation to an employee's role and seniority.

The first appeal involved a manager who oversaw Employsure's HR software 'Bright', who resigned in December 2020 after accepting a position with Elmo as a sales manager for its own platform 'Breathe'.

Employsure discovered the manager was due to start work with Elmo the following month, despite his employment contract providing for a three-month notice period, and it sought to restrain him from taking up the Elmo position until January this year...