RSM Security Pty Ltd & Ors v Starks

The High Court of Australia heard an appeal in *RSM Security Pty Ltd & Ors v Starks*. The dispute concerned the enforceability of restraint of trade clauses contained within employment agreements entered into by the respondents, who were former employees of the appellant, RSM Security. The respondents had commenced employment with a competitor of RSM Security shortly after their resignations.

The central legal issue before the High Court was whether the restraint of trade clauses in the employment agreements were void as being contrary to public policy, and therefore unenforceable. Specifically, the Court had to consider whether the restraints imposed were wider than reasonably necessary to protect the legitimate business interests of RSM Security, such as its confidential information and customer connections.

The High Court, in allowing the appeal, found that the restraint of trade clauses were indeed enforceable. The Court reasoned that the restraints were no wider than necessary to protect RSM Security's legitimate interests, considering the nature of the business and the roles performed by the former employees. The principles applied focused on the balance between the employer's right to protect its business and the employee's right to work. The Court determined that the duration and geographical scope of the restraints were reasonable in the circumstances.