A non-recruitment or anti-poaching covenant in an employment contract is a restraint of trade but may be supported by a legitimate interest in both confidential information and staff connection. Staff connection — the employer's interest in maintaining a stable trained workforce — constitutes part of the goodwill of a business and is amenable to protection by covenant in a manner similar to customer connection, even in the absence of protectable confidences. In NSW, confidential information falling short of trade secret status (including 'know-how') can support a restraint of trade, Faccenda Chicken not being followed. Where a customer non-solicitation restraint is supported by protection of confidential information as well as customer connection, it may legitimately extend to customers with whom the employee did not personally deal.
The full text is available to signed-in members, including the 88 later cases that cite this judgment.
8 of the 88 citing cases carry a classified treatment. How each court treated it is available to signed-in members.