Mainmet Holdings C. V. S. V. Austin

IV RECOMMENDATION AND CLAUSES

1. Definition The directors should make the definition of confidential information narrow and clear in the contract, including an enumeration of examples such as market research data, sales plans and advertising strategies. In Mainmet Holdings plc v Austin, the defendant was held not in breach of confidence, because the reports about defects in customers’ systems are not considered as trade secrets.[ Mainmet Holdings plc v Austin [1991] F.S.R. 538] It would be easier to determine the nature of the reports if the corporation has specifically stated that as confidential information in the contract. Apart from the clarification, the firm needs to satisfy the requirements of the ‘necessary nature’ of
The restricted business type should be similar to the current activities and not too broad.
The restricted geographical area should not extend to where it is impossible to solicit the employer’s current customers.[ Woolworths Ltd v Olson (2004) 184 FLR 121] One way that can bring legal effect to the restraint clauses is by providing reasonable considerations.[ HRX Holdings Pty Ltd v Pearson [2012] FCA 161] In HRX Holding Pty Ltd v Pearson, the firm negotiated with the departing personnel by providing remuneration and shares in exchange for his non-compete obligations afterwards.

4. Remedies It should be stated that Veronica Airlines has the right to terminate the contract of the employment and seek for injunctions if any employees were found disclosing or showing obvious potential to disclose confidential information.[ Pedley v IPMS Pty Ltd t/as Peckvonhartel [2013] FWC 4282] Other remedies include orders for delivery up or destruction and account of