My restraint of trade clause stops me from working for a competitor
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My restraint of trade clause stops me from working for a competitor

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14.08.2026

I want to move to a competitor, but my contract has a clause preventing me from working in the same industry for twelve months anywhere in the country. Is such a clause enforceable, and what should I do before I move?

Site Administration 16.08.2026
reply date: 16.08.2026

Restraint of trade clauses in New Zealand employment agreements are enforceable only if they are reasonable and go no further than necessary to protect a legitimate proprietary interest of the employer, such as trade secrets or confidential information, or customer connections. Courts are reluctant to enforce broad restraints that prevent someone from earning a living, and a twelve-month nationwide ban on any work in the industry is often seen as too wide, especially for someone without access to significant confidential information. The Employment Relations Act 2000 and the courts weigh factors like duration, geographic scope and the seniority of your role. Get the clause reviewed by a lawyer before you accept the new job, and consider asking the new employer for support. Seeking a negotiated release may avoid a costly urgent injunction.

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