The Importance Of Having A Business Uniform Dress Code

In the United States, more than thirty two million people go to work everyday wearing business uniforms. A business uniform can project a unified image of a company that consistently works with the public.

A business uniform can indicate to customers who the employees are and ask for assistance. Business uniform also allow employers to dictate what type of dress is appropriate for their business. Employees prefer to wear business uniforms, as they do not have to buy a wardrobe for work. There are some employers who will pick up the cost of cleaning the business uniforms. This mostly happens when the company is renting their business uniforms.

Most business uniforms are made of a cotton polyester blend fabric. It stands up to numerous cleanings and is durable and long lasting.

Traditionally, business uniforms have been plain and drab single colored shirt and pants. The color was usually brown or navy blue, or white. There were no other colors that were available.

In recent years, style has come to business uniforms. Employers are choosing oxford shirts and dress pants over “the plain look.” This is called “the executive look.” This look is gaining popularity. It gives the appearance of a prosperous dignified office. Other business uniforms such as lab coats and aprons, vests and smock can be worn over regular clothes. This promotes the image of unity without each person wearing the same business uniform. Most business uniforms can last up to five years. This is with regular wear and washing.

Another option that employers have is to rent business uniforms. This however can be very expensive and eighty percent of all business owners buy their business uniforms out right. When an employer rents their business uniforms, the rental company is responsible for the cleaning of business uniform. The option of renting business uniforms is cost effective to business that have a high employee turnover rate. By renting the business uniform, the company is not paying out funds to buy business uniform for employees who will not last long.

Business uniforms are sold through many different companies. Retail outlets and direct sales companies may be the most expensive, but they also offer fantastic discounts. Business owners should try to find vendors who specialize in only business uniforms. Buying from vendors such as these can save a company a lot of money.

Another advantage to ordering from vendors is that they can offer different terms in their service. They can offer services such as embroidering of logos and employee names. Business uniform rental companies supply each company’s employee with five uniforms per week. Each week the rental company drops off the one set of clean business uniform and picks up the dirty ones. This is done for everyone in the company that has a business uniform.

These services usually require a minimum order of business uniforms and a service contract for two years. This is the standard in the industry of business uniform rentals.

Although it would be more cost effective for a uniform rental company to handle business uniforms if the company is based within the same area as a company that is already being serviced. Some business rental companies will offer a discount for services if a current client refers their service.

The rate for purchasing business uniforms for a five-year period can be as high as two hundred dollars per employee. This rate does not include any cleaning fees.

The rate for renting business uniforms is usually a negotiated rate. It can be between two hundred and three hundred dollars per employee depending on how many business uniforms are supplied to each employee. This rate can be lowered if the service contract is longer than two years.

Experts advise that when a company chooses to rent business uniforms, they should not choose anything to bizarre. By choosing a standard type and color business uniform, replacement business uniforms can be easily obtained. Experts also advise that it is a good idea to institute a business uniform dress code. It will help with the overall image of a company.

In past years, when business uniforms were returned, they could not be reused because of logos that were embroidered on them. They were difficult to take off and often ruined the business uniform.

Today, thanks to a new process that has recently been developed, the logos are attached on a small patch that is heat-sealed on the business uniform. It can be removed with very little effort and there is no damage to the business uniform. This makes reuse of the business uniform possible, there by lowering the cost to companies in need of rental business uniforms.

When a company decides to either rent or buy business uniforms, they have already got a specific design in mind. Whether they have something specially made for the look of their company or they go with the traditional look, they are looking for a good high quality long lasting and durable business uniform. The do not want a business uniform to fall apart before the contract is up.

It can be confusing for a company to try and find the best rate and the best quality business uniforms. It can be a long process comparing company rates and policies.

By doing a google search, it will yield over seventeen million links. Who has time to go to all those links? A suggestion is that by narrowing the search to a specific city and state that the company resides in will reduce the number of results thereby cutting the search time almost in half. This will make the search much faster.

Business uniforms are becoming popular not only in the United States, but all over the world. Countries like Australia are realizing the benefits of having a business uniform dress code. Thousands of businesses in Australia have already instituted a business uniform dress code policy.

Studies have shown that by starting a business uniform dress code policy is first step in making your business run better and be more productive.

The Forex Trading Checklist

Before one embarks on trading Forex there are several things that the does Forex trader needs to decide on. Trading the worlds largest market can be a very challenging endeavor and one should be very careful to know what they are getting into. One should carefully take into consideration the following before trading forex.

The first question you would need to ask is what currency pairs am I going to trade? Most brokers now offer an over 30 currency pairs. These different pairs trade very differently so the Forex trader should be very familiar with each currency pair they trade. One particular currency pair may be more sensitive to interest-rate movements then others. Another pair might be more sensitive to a global news event .This among other factors would be some of the criteria that would be used in deciding which pairs of Forex trader would trade.
Having news and knowing the economic calendar is very important for the Forex trader.

The next item that a Forex trader will need to determine is deciding on which Forex trading platform am I going to use? It is very important that the Forex trader be familiar with how each platform they use works. One of the more popular Forex trading platforms among Forex brokers and traders alike is MetaTrader 4. MetaTrader 4 has established itself as the most popular forex trading platform in the world. MetaTrader 4 is also known as a platform with many features. Becoming familiar with all of the features within a Forex trading platform is essential to Forex trading success.

The final item on the Forex trading checklist would be the selection of a Forex broker. There are several criteria that should be taken into consideration when making the choice of a Forex broker. First of all finding a broker that is regulated and located in one of the main regulated jurisdictions like (US, UK, Australia) is one of the first thing to consider. The type of trade execution that the broker offers is also important. Using a Forex broker that has a non-dealing desk trade execution operation would be beneficial.

Online Career Tests – A First Step to Your Ultimate Career

It stands to reason that often times the people who have a
natural liking or interest towards a certain career path may perform
much better when they are working in this area. It also stands to reason
that if it is this natural interest in the role that lead them to the
career in the first place will also mean that they will be much happier
in their work and probably achieve much greater career satisfaction over
their lifetime.

Once a person’s career interests are identified
the task of locating their ideal profession or career often becomes
easy. The difficulty however often presents in trying to locate or
identify a persons interests that could translate into a realistic
career path. There are many ways to do this and often the best approach
is to use not just one, but a combination of methods, in conjunction
with each other to arrive at the best options or solutions for you.

One
of these methods that can be extremely useful in the career counseling
process is the use of career counselling or career interest test. Using a
career counselling test should not be seen as the be all and end all,
but rather as a starting point for ideas and exploration of your career
interests. There are many online career counselling tests that can be
used, however it is important to stick to or use only tests that are
valid and reliable and not simply fun “quizzes” which are found on the
internet. One example of a good online career test or questionnaire is
the Strong Interest Inventory. The benefit of taking such a test online
is that it is used widely all around the world by career counsellors and
for this reason, once you have your results you should not have too
much trouble in obtaining follow up career advice from a professional
career counsellor if you feel like you need more support and career
advice.

Another useful tool used commonly by career counsellors
around the world is the Myers-Briggs Type Indicator personality test or
MBTI for short. This can also be taken online and as with the Strong
Interest Inventory, the fact it is used so widely around the globe in
career counselling means you can easily obtain follow up career advice
based on your results at any point in the future if you wish.

Both the Strong Interest Inventory career test and
MBTI personality test should taken by people looking for a simple
answer. Career tests are an integral part of the career counselling
process and are an excellent starting point for people looking to find
their ideal career. Such career and personality test should give the
person many different career ideas and open their minds to many
possibilities which will need to be explored after the career test has
been taken. A person may feel comfortable and confident in exploring
these many possibilities on their own, or it is at this point that
people often feel they would like some additional support from a career
professional so they can be guided through this process.

There are
many online career counselling tests, including those above, which are
easily located through a search engine such as Google. A good career
personality test such as those above will provide the test taker with
many career options to explore, and it’s at that point that a career
counsellor can often provide valuable assistance to assist in maximising
the benefit of the career test. This also can be done easily on the
internet by using a search engine with a search term such as “registered
professional career counsellors list” or something similar. In
Australia there is the The Career Development Association of Australia
(CDAA) which can be used to locate an appropriate career counseling
services close to you.

So in summary, if there is one piece of
advice I can give to those looking to find the right career path for
them, it would be to take a quality career counselling test and use this
to get ideas to work from. From their the many options raised can be
explored and examined, either by yourself alone, or with the assistance
of a career counsellor or professional.

Qualities of an Excellent Forex Broker in Australia

A forex broker is a person who trades on behalf of a trader. A forex Australia trader buys and sells currencies in the market with the aim of making a profit. When a broker makes a profit, the merchant gives the broker a commission. FX traders do not invest their money in the deal. Therefore, they should ensure that they buy and sell intelligibly and avoid making losses. If you are planning to be a forex broker, you should have the following qualities.

Wise

Since forex is highly volatile and you can make huge loses within a short span of time, you should be wise to identify when to execute a deal and when to get out of the job. Entering the job at the right time ensures that you have higher chances of making profits, while leaving the market at the right time aids in lowering losses.

In addition to being able to identify the best time getting in and out of a market, you should be able to identify scams. The FX market is unregulated. This means that anyone from any part of the world can get into the business. This exposes the deal to great scam.

With good forex brokers Australia, you should be able to tell frauds from legitimate trades. This way you will be able to avoid engaging in swindle merchants that will translate to lose on the side of you.

You should use your intelligence and experience in telling swindle from legitimate deal. In addition, if you have tools that are able to differentiate legitimate and swindle, you should use them.

Positive Attitude

Forex trading can be stressful-especially when you are on a losing streak. In addition, if you are not using trading software, sometimes it may seem like the market will never be right for trading. Due to this, as a broker, you are bound to give up. Before giving up, you should know that the merchant solely relies on you in executing the deals. Instead of giving up, you should maintain a positive attitude and stick to the business until you start making profits.

Conclusion

In addition to the above qualities, as a forex broker, you should have high integrity and transparency. If you have made a profit, you should inform the merchant the exact amount that you have made. If you have made a loss, you should also inform. This way, you will maintain your integrity and your business will flourish. forex australia

Effects That Accounting Choices Have On Users Of Financial Statements

Abstract

The paper is an examination of the effects of accounting choices on users of financial statements. First of all, a historical examination in the subject matter was examined. It was found that most researches normally dwell on single characteristic effects of accounting decisions on financial statement users. Current GAAP on the matter also concurs with the latter matter.

It was therefore found that there may be a need to look at how these factors intertwine in affecting users of financial statements. Since firms may have to content with a number of effects at any one time, it is important to carry out a study on a combination of factors. Thereafter, an analysis ought to be done in order to investigate which factor is the mot important and which one takes least precedence. This can go a long way in assisting managers and other financial decisions makers about accounting choices in the future.

Introduction

There are a number of users of financial statements within any respective firm. Usually, some of the intended effects of accounting choices can become real effects. On the other hand, there are also foreseen consequences that may emanate from external or internal factors. The essay shall examine some of these issues through existing research on the matter. Suggestions will be made on problematic areas and possible courses of actions will also be laid out. The latter suggestions will be particularly useful to the public accounting body owing to the fact that some loopholes on the subject matter will be identified. (Riper, 2006)

Historical development of theory

A lot of research has been done with regard to voluntary accounting choices. This is largely because the effects of such choices are more clear cut and predictable. For instance, a number of accountants have utilized the issue of accounting discretion in order to understate their financial performances during periods of string performance and also to overstate their financial status during periods of low performance.

Research has shown that there are three major reasons why firms can choose to engage in certain income decreasing or income increasing activities. First of all, this may be motivated by the need to include the economic events that are prevailing at that time. Secondly, such accounting choices may be motivated by strategic objectives within the corporation under consideration. Lastly, engaging in such accounting choices can be motivated by a combination of both economics and company strategy. Usually, the accountant enacting these changes may be motivated in their very own expectations. (Hopwood, 2008)
Managers tend to use income increasing tactics when there are interested in enacting strategic changes.

In fact, it has been shown that most financial users tend to believe that any income increasing measure enacted by their managers is in close relation to the overall nature of these kinds of objectives. In other words, employees are less likely to be influenced by positive or income increasing accounting decisions than by income decreasing accounting decisions. When managers opt to increase their income, chances are that employees may assume that this is part of a strategy to reach an industry benchmark. Consequently, they are less likely to believe it.

On the other hand, when managers make accounting decisions to decrease their overall incomes in their financial statements, then employees are much more likely to believe the latter results than if incomes had been increased. This is largely because such employees may assume that the reflections being put out by their employers have been one in order to reflect the economic situations prevailing at that time. In other words, it may be necessary for firms to prepare for skepticism in the former case than in the latter one.

In close relation to income decreasing or income decreasing acts in financial statements is the issue of qualification in making accounting decisions. Users are likely to regard qualified income reducing acts as being more strategic in nature than unqualified income decreasing acts. This is the case because when the acts are qualified, then chances are that the users would asses the firm in a more positive light than if the financial statement had not been qualified.

There is a need to compare financial statement user reaction to income increasing and income decreasing changes in comparison to reference point. Usually, most firms do not operate in isolation. Employees are well aware of the goings on within their industries. Consequently, when accounting decisions are made to either increase or decrease incomes within corporations, employees or other users tend to resort to reference points such industry benchmarks to see how far below the mark they are or how far above it they have reached. (Proell, 2008)

Statistics indicate that users react more positively to income decreasing changes even when comparing them to industry benchmarks. This is usually because most people may treat this as being representative of occurrences within the industry under consideration and therefore leaving room for growth.
On the other hand, when incomes are perceived as being way above industry benchmarks, then users are likely to assume that those benchmarks do not represent the goings on their particular industry. This means that they may treat such a change as being deviant from the norm. Because of this, users may assume that such a firm cannot survive within its industry of operation and that the assessment of that firms performance is therefore below par in reality.

Financial statement users are likely to remain indifferent to changes made by their employees in the event that the accounting decision is an income decreasing one but a qualified one. This is largely because users are likely to attribute such changes to either strategic reason or to reflect economic conditions within a certain industry. This means that those changes may indicate the overall problems facing these groups when it comes to the process of enacting these changes.

Income increasing acts may also solicit different reactions in the vent that they have been qualified or if they are not qualified. Expert opinion suggests that financial statement users are much more likely to believe them if they are qualified.

In the agency theory, firms are treated as a point of convergence of contracts. This means that a number of users of financial statements view accounting choices as means against which firms can get incentives. The incentives are important determinants in the process of making accounting decisions largely because they can make the difference between the detriment or survival of a number of corporations.

Healthy and financial firms often find that they have to make accounting decisions. However, the forces or determinants affecting these two types of firms are dependent on the kind of arrangement being made. In certain reviews, some analysts have assumed that the type of incentives facing these two types of firms is the same. However, this may not necessarily be true because financially distressed firms may be challenged to engage in certain contracts depending on the type of benefits that they may derive from certain contract incentives. (Proell, 2008)

One of the drivers of accounting decisions in financially distressed firms is the issue of debt covenant isolation. Financial debts are a particularly pressing issue for such firms and it is likely that their accounting choices can be adversely affected by these decisions and vice versa (that the accounting choices they make can change their prevailing situations)

In other circumstances, firms facing financial distress may be motivated to make accounting decision that can subsequently affect their jobs or their firms altogether. In other words, some troubled firms may consider their situations as being temporary. This means that their greatest concerns may not be to get accounting bonuses. Instead, their focus may be on restoring the financial position of their firms and making the most of their kind of arrangements.

It has also been shown in a number of researches that new CEO tend to deflate their incomes when accompany has been recording poor financial management during the previous year. This is an aspect that has been carried forward in a number of companies that may be considered as financially troubled ones.
It should also be noted that accounting decisions in the latter category may also made in order o reduce incomes. This creates an image of a corporation that is vulnerable.

In this regard, such firms are likely to obtain concession from the government through government subsidies or they may find that labor unions offering incentives to poorly performing firms my be motivated to consider them if they record lower incomes. In other words, it can be said that such firms may make be affected positively by such decisions since they may gain favor from the government or from labor unions. On the other hand, if these income deflations are discovered, then a financially distressed firm may be required to close. (Riper, 2006)

In other circumstances, forms undergoing financial distress may be motivated to make accounting decisions in order to cope with management changes that may have occurred at the time. This is usually the case when the incumbent management finds that the new firm he or she is operating is dealing with lower performance than was the case in the previous regime. Such mangers may be interested in displaying positive light to internal and external stakeholders of the company under consideration.

In other situations, it may be possible to find that other firms are undergoing government assistance investigations. These are usually those firms that are in a position of getting incentives from the government if it found that their management principles are in order. Usually, such firms are likely to make accounting decisions that would affect them in a positive light by making them liable to receive incentives from the investigators.

In other researches, it has been found that firms facing financial difficulties may be required to deal with large accrual especially during their first year in dividend reductions. This means that a firm may be faced with more than one particular financial challenge at a time.

With regard to accounting decisions and the effect that the choices have on financial statement users; a number of researches have also been done on the user expectations. In other words, this is another factor that can affect the overall decision made by a certain corporation and how the users within that firm are affected by it. For instance, one is likely to find that within certain forms, the users under consideration have very little regard for the kind of decisions that they may be making because of the fact that there may be a match between their expectations and actual occurrences. However, in instances where financial statement user expectations are quite varied from actual occurrences, then it is likely that these issues may not affect them positively. (Belkaoui, 2007)

Risk management has also been shown as an important predictor of accounting choices and hence highly influential in determining some of the effects of these choices. This is largely because financial statements have a shocking effect on users when the information being displayed is included.

Risk management sis usually something that may be firm specific mostly because different companies are faced with different obstacles at any one time. For instance, when a company was faced with a number of security risks, then chances were that they would classify those security risks in manner that would portray them in a positive light. Additionally, benchmarks set up in accounting standards were highly influential in determining whether certain issues were considered as security risks or whether they were not. This means those weaker banks are much more likely to treat fewer securities as being lower than the accounting benchmark than vive versa.

Interest risks that come with securities are also an important factor in determining effects of such accounting decisions. This is because levels of interest risks on a certain bank portfolio can go up depending on how that particular issue had been classified by the parties involved in the preparation of the financial statements (Warfield, 2008)

Research has also shown that there are also other factors that may affect financial decisions being made by respective individuals in terms of the perceived expectations and actual occurrences.
Current GAAP

Financial statement users are adversely affected by the accounting choices made within certain firms. One such group are financial investors. Research has shown that the manner in which financial statements are presented to non processional financial statement users such as investors has a very important role to play in influencing their choice to invest in that respective firm. When a firm opts to make an accounting decisions in which there it highlights the effects of a net income on the goings on within a certain firm, then chances are that one might have to deal with these scenarios in a relatively different manner. In other words, an investor may make the choice to invest in such a firm if the information given is forthcoming in this regard.

The converse is as true, when accounting decision are made such that investors have now ay way of understanding the fair value that they have on a particular investment, then chances are that that group may be persuaded to look elsewhere for investment. Usually, information about financial statement interpretation can be done on the same document but as a note or on the margin of the financial statement. Consequently, firms that may be in unhealthy situations may be affected positively by making such an accounting choice. On the other hand, failure to make such a decision may also influence them negatively owing to the reduced level of awareness given to these kinds of approaches. (Warfield, 2008)

It should b noted that a number of financial statement users are highly affected by the accounting policies in certain firms or the level o adoption of accounting standards. This is usually the case when considering foreign investment. In other words, there are situations in which a certain investor may be dealing with the issues surrounding that particular scenario especially with regard to the kind of changes affecting a certain party.

An example of how this can be displayed is through looking at the relationship between two countries such as the US and Australia. It is likely that a US foreign investor will be more interested in making investments within countries that are US GAAP aligned. This factor is quite important in accounting decisions and hence accounting effects because only has to look at accounting policies of a number of developed nations to understand this. The US is one of the heaviest foreign investors in Australia. In order to appeal to the latter group, it was found that Australian accounting standards took a turn and began conforming to the US institutional frameworks and also to their GAAP.

There are a number of reasons identified in literature for selecting certain accounting choices and these reason include:

Improves financial statement credibility
Reduces processing costs

When accounting policies are voluntarily done in order to come up with the most influential choices on foreign ownership, then chances are that they can attract greater investments if they are aligned to the foreign investors institutional holdings or if they are also associated with the joint determinants under consideration.

The following table illustrates the example of US foreign investors interested in Australian companies

VariablesStatisticCompanies with US investmentsCompanies matched by size and industryp-value
Total assetsMean
Median
24,157
2, 8903, 924
525

Employment Law – The Enforceability Of Post Employment Restraints Of Trade (vic.)

Employing highly intelligent and highly qualified employees in a range of sophisticated commercial businesses is a risky business for employers.

To acquire competitive business advantage in an increasingly globalized and networked world of pharmaceuticals, genetics, telecommunications, power supply and information technology requires the employment of highly qualified, well educated, experienced and clever employees.

Potential employers and employees are both well advised to seek legal assistance when drafting or accepting terms of employment. Due to the seniority of these employees, their employment contracts are less likely to be workplace agreements but more likely to be private , one-off, contracts of employment.

Often, employees in the pharmaceuticals, genetics, telecommunications, power supply and information technology industries will have access to secret and confidential information which is both price and market-sensitive. This information might be chemical formulae, scientific and technological data, chemical, electrical or manufacturing trade processes, hardware or software engineering designs, or a range of other sophisticated technological and scientific information. The potential employee will need access to this information to perform his or her anticipated role. When the employment relationship ends, however, the employer is faced with a double problem. First, the employee is leaving. Whether the departure is voluntary or involuntary, it will be an inconvenience and a disruption to the employer. Secondly, and more importantly long term, the departing employee will take with him or her, knowledge of the secret and confidential information which may be the very basis of the employer’s competitive advantage in a particular industry or market.

To minimise this long term disruption, employers often include restraint of trade clauses in employment contracts when employing people in these sensitive areas. Commonly, the restraint of trade will prevent the former employee from seeking employment with any competitor of the former employer in the particular market for a period of time.

In current times, where there is a shortage of trained staff, particularly in scientific and technological areas, the reason why an employee departs is generally because he or she has received a better offer from a competitor.
In deciding whether or not to enforce the restraint of trade clause against a departing employee, Victorian courts have to balance a number of competing factors.

First, neither Australian nor Victorian general law will restrain a former employee from seeking employment with a competitor. Any such restraint must be found in an enforceable clause in the contract of employment with the former employer. Employers, therefore, should always ensure that staff are employed pursuant to written contracts of employment which contain enforceable restraints of trade.

Secondly, Victorian courts will not allow employers to prevent former employees from conducting a living by practising the skills which may have taken many years to acquire through university courses or practical experience. However, this is only a general rule or starting point.

Thirdly, Victorian courts will not allow former employees to obtain an unfair springboard into a new career by abusing the trust of the former employer. Examples are where employees spend an entire weekend photocopying price lists, formulae, client contact details and other confidential information and then resign the following Monday morning to set up a competitive business the following Tuesday morning.

Essentially, Victorian courts perform a balancing act between the competing interests of the employee to be able to continue to gain a living on the one hand and the employer’s interests of being able to reasonably prevent the disclosure of confidential and secret trade-sensitive information to competitors when the employment relationship ceases.

The sorts of factors courts have taken into account are as follows. First, Victorian courts will look to see whether the restraint of trade is reasonable or is too restrictive. Any restraint which tries to prevent an employee from working not only in the particular business of the former employer but any other associated or ancillary business is likely to be struck down. Likewise, a restraint which seeks to prevent an employee from working for an excessively lengthy period (generally more than 12 months) is also highly likely to be struck down and declared unenforceable. To overcome these problems, lawyers draft restraint of trade clauses to have a “waterfall” effect. The clause contains a number of alternatives, for example, starting from a very wide restraint and then proceeding to an increasingly narrow restraint in terms of future employment activities or in terms of length of time. Each one of the alternatives is severable from the contract if declared unenforceable by a court. Accordingly, a court might reject a restraint which provided for former employee X not to be employed in any pharmaceutical industry within South East Asia including Australia. The court, on the other hand, may be prepared to enforce a restraint which prevented employee X from being employed in the field of molecular genetic artificial-blood technology in either Melbourne or in Sydney for a period of one year. Such a restraint is far more precise and reasonably protects the former employer’s confidential information whilst allowing the employee to seek employment in the general field of molecular genetics.

A court must also be satisfied that an employer’s fears are genuine. For instance, is the information really secret and confidential? If the information is only knowledge which an employee would obtain through the repetitive working of his or her ordinary job, courts are less likely to regard this as secret or confidential information. Other sorts of information which are publicly available (even such as client contact details and price lists) may also not qualify. If there is no secret or confidential information, then there can be no restraint of trade.

Courts will also look to see whether the employee was specifically compensated for the restraint when first employed. If an employee received a specific additional sum as a hiring incentive for a longer than normal restraint of trade, courts are more likely to be persuaded that the restraint, when ultimately applied, is reasonable. The employee has accepted the restraint when first employed and has received a specific benefit for it.

Another factor which courts will examine is the seniority of the former employee. The more senior, the more likely it may be that the now departed employee may be capable of encouraging other staff to follow him or her and more capable of influencing former clients to switch allegiance. Alternatively, if the former employee was not employed in a managerial position and was only employed at either a junior or specific technical level, courts may be less worried about wholesale client or staff defections which would need to be prevented by the restraint of trade clause.

Until recently, courts seemed reluctant to enforce restraints of trade for more than 3-6 months. However, recent New South Wales Supreme Court authorities seem to be swinging the pendulum back in favour of employers where the balancing exercise outlined above suggests that the restraint of trade does need to be enforced to reasonably protect the former employer’s market and confidential information interests. For instance, Brereton, J., in John Fairfax Publications Pty Ltd v. Bert & Ors [2006] N.S.W.S.C. 995 upheld a restraint of trade for 12 months in relation to a former employee who had been employed at a senior level. The same judge, in Cactus Imaging Pty Ltd v. Peters [2006] N.S.W.S.C. 17 (18 July 2006) also enforced a restraint of trade for 12 months in a situation where the former employee operated in a restrictive market or oligopoly.

This is a complex area of law. Contracts of employment generally and restraints of trade particularly need to be carefully drafted to have their intended legal effect.

Employers and employees need to be carefully advised on the range of tactics available in post employment scenarios.