Worchild v The Drink Nightclub (Qld) Pty Ltd

In Worchild v The Drink Nightclub (Qld) Pty Ltd, the plaintiff sought an injunction against the nightclub, alleging it had breached a non-compete clause in her former employment contract. The case was heard in the Federal Circuit Court of Australia. Worchild argued that the nightclub had engaged in conduct that contravened the non-compete clause by operating a business that was substantially similar to her former employer's business. The nightclub denied these allegations and contended that the non-compete clause was unreasonable and therefore unenforceable.

The central legal issue before the court was whether the non-compete clause was enforceable in light of its terms and the nature of Worchild's former employment. The court had to determine whether the clause was reasonable in all the circumstances, particularly considering the duration, geographic scope, and the nature of the activities restricted. The court also needed to assess whether the nightclub's operations constituted a breach of the non-compete clause.

The court found that the non-compete clause was not reasonable and therefore unenforceable. It concluded that the clause was overly broad in terms of its duration and geographic scope, and it restricted Worchild from engaging in activities that were not closely related to her former employment. Consequently, the court dismissed Worchild's application for an injunction. The court also ordered that Worchild pay the nightclub's costs of and incidental to the application.