Think Global Recruitment Ltd v Moultrie

The case before the Federal Court of Australia was an application by Think Global Recruitment Ltd for interlocutory injunctions against their former employee, Ms Moultrie, to enforce restrictions in her employment contract. The company sought to restrain Ms Moultrie from engaging in activities that would compete with their business, alleging that she had breached the non-compete clause in her contract. The court was asked to determine whether there was a serious question to be tried as to whether Ms Moultrie had breached or was about to breach the restrictions in her contract.

The primary legal issue was whether the applicant had demonstrated that there was a serious question to be tried that Ms Moultrie had breached or was about to breach the restrictions in her employment contract. This involved a consideration of the enforceability of the non-compete clause and the balance of convenience test, including whether the applicant had a reasonable prospect of success at trial and whether the balance of convenience favoured the grant of the injunctions.

The court considered the evidence presented and concluded that the applicant had not demonstrated a serious question to be tried as to whether Ms Moultrie had breached or was about to breach the restrictions in her employment contract. The court found that the non-compete clause was not enforceable as it was not reasonably necessary to protect the applicant's legitimate business interests. The court also found that the balance of convenience favoured Ms Moultrie, given the potential impact of the injunctions on her ability to gain employment. Accordingly, the application for interlocutory injunctions was dismissed.

The court did not make any orders in favour of the applicant, and Ms Moultrie was not restrained from engaging in activities that would compete with Think Global Recruitment Ltd. The court's decision highlights the importance of ensuring that restrictive covenants in employment contracts are reasonably necessary to protect legitimate business interests and are enforceable under Australian law.