When a business is transferred between corporate entities controlled by the same person and employees continue performing the same work on the same terms, novation of the employment contract (including post-employment restraint clauses) may be inferred from the conduct of the parties without a written agreement or express consent. There is no threshold question as to whether there was a specific intention that particular terms (such as restraint clauses) of the old contract form part of the novated contract — all terms transfer unless varied by agreement.
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