Nova Employment Ltd v Michelle Hira

Nova Employment Ltd, an entity engaged in assisting individuals with disabilities to find employment, sought to restrain three of its former employees from working for any of its competitors for a period of two years. The former employees had joined companies that provided similar services to Nova's. The matter was heard in the Federal Circuit Court of Australia.

The primary legal issues revolved around the enforceability of the restraint of trade clauses contained in the contracts of employment of the three defendants. The court had to determine whether Nova's prima facie case was strong enough to justify the granting of the injunctions and whether the balance of convenience favoured Nova or the defendants. This involved an assessment of the enforceability of the restraint clauses in light of the nature of the defendants' new employment and the potential harm to both parties.

The court found that the prima facie case for the injunctions was weak, as the defendants' new employers engaged in a similar line of business as Nova. The court considered that the restraint clauses, while seemingly broad, were not entirely unreasonable given the nature of the work involved. However, the court emphasised the importance of the balance of convenience and found that it favoured the defendants, given the potential significant impact on their ability to earn a livelihood. Consequently, the court determined that the injunctions were not warranted at that stage of the proceedings.

The court ordered that the application for interim injunctions be dismissed. The defendants were not restrained from working for their new employers, and no further orders were made regarding the enforceability of the restraint clauses.