02 8880 1347
← Legal Guides Published · Updated

Former Employer Trying to Enforce a Restraint of Trade? How to Respond

You changed jobs and a letter arrived demanding you stop. Most restraint clauses are unenforceable in Australia — here's how to respond properly.

Start your Non-Compete Response — $49 →Drafted from your answers in minutes · you review it before anything is sent

Topics: employment, former employer, legal response, restraint of trade

You took a new role with a competitor, opened your own business, or started serving former clients — and now your old employer’s lawyer has sent a letter accusing you of breaching a restraint of trade clause and demanding you stop. The letter is calculated to scare you into compliance. The reality is that most restraint of trade clauses in Australian employment contracts are unenforceable, and the right response — sent promptly and on the right legal basis — usually ends the matter.

You have two ways to deal with this:One of them is done for you.
Do it yourself
Free — if you get it right
Hours of research
Easy to cite the wrong law
Easy to leave out a firm deadline
Done for you
Claim Done
$49 flat. That is it.
Ready in about 5 minutes
Cites the law for your state
You approve it before it is sent
Start now — $49 →
A lawyer's letter
Typically $500 to $1,500
Days to arrange
Legal advice on your matter

The legal context — restraint of trade is presumed void

Australian common law treats every restraint of trade as void unless the party seeking to enforce it can show it goes no further than reasonably necessary to protect a legitimate business interest. This is a high bar. Courts assess (a) the legitimate interest being protected (typically confidential information, customer connections, or workforce stability), (b) the geographic scope, (c) the duration, and (d) the activities restrained. New South Wales is the only Australian jurisdiction with statutory modification powers (Restraints of Trade Act 1976), allowing a court to read down an unreasonable restraint. In every other state, an unreasonable restraint typically falls entirely. The federal government has also signalled likely reform of post-employment restraints, particularly for low and middle income workers.

Common employer arguments and why they fail

  • “You signed the contract.” Signing does not save an unreasonable restraint. Reasonableness is a question for the court.
  • “You have our confidential information.” Confidential information is protected by separate equitable obligations and does not need a restraint clause to enforce.
  • “You’ll poach our clients.” Customer connections are protectable, but only to the extent necessary — a 12-month, Australia-wide ban on contacting any former client is rarely reasonable for a junior employee.
  • “The clause is in cascading tiers.” Cascading restraints (e.g. “12 months / 6 months / 3 months”) are interpreted strictly and often fail outside New South Wales.
Free · 30 seconds

Ready to put it in writing?

Answer 3 quick questions to check you have the details your document needs, and see your next step.

1. Who is this about?

Give us a name — even a first name or business name is fine.

2. How much is at stake?

3. Do you have it in writing?

Your result is ready. Want a copy by email? (optional)

That email does not look right.
Leave it blank to see your result now. Add your email and we also send you the result and your next step, so you can come back to it. No spam, no list.

Continue to your $49 Non-Compete Response →
Your answers are carried across — you will not have to type them again. You read and approve it before anything is sent. No card needed to start.

The Legal Response approach

A formal Legal Response sets out why the restraint is unenforceable on the facts — the absence of a legitimate protectable interest, unreasonable scope or duration, lack of consideration if the restraint was added mid-employment, or jurisdictional issues — and puts the former employer on notice that any injunction proceedings will be defended and a costs order sought. A well-drafted response usually closes the matter without litigation because the employer’s lawyer reassesses the strength of the claim once the response lands.

Non-Compete Response — $49You approve it before it is sent · Ready in about 5 min
4,282 users over the past 30 days
Putting it in writing — properly — is what turns a complaint into a claim.
I'll draft your Non-Compete Response right now. Who is this about?
No card needed to start · Type a name and hit send

What Claim Done delivers (flat fee)

The Legal Response service is a structured, citation-heavy reply prepared after you walk through the wizard with the clause wording, your role, the new role, and the relevant facts. Claim Done generates a polished PDF response citing the relevant restraint of trade common law and any applicable statute (such as the Restraints of Trade Act 1976 in New South Wales), ready to send to the former employer or their lawyer.

What to expect — and the litigation escalation

Most enforcement attempts evaporate once a properly-drafted Legal Response arrives, because the cost-benefit shifts against the former employer. If they push on with court proceedings (typically seeking an interlocutory injunction in the Supreme Court of the relevant state), the response forms the foundation of your defence.

Get your Legal Response. Done in about 5 minutes.

Start My Legal Response →

No card until the end. No subscription.

What happens when you put it in writing — properly

Same problem. What a prepared case looks like.

Before — doing it yourself
You explain it over the phone.
They nod, promise, and forget.
Weeks pass. Nothing is on the record.
When it escalates, it is your word against theirs.
→
After — a formal Non-Compete Response
A formal Non-Compete Response lands in their inbox.
It cites the law and sets a deadline.
There is now a paper trail.
They know you are serious.
Send mine — $49 →Drafted in about 5 minutes. You read and approve it before anything is sent.
Non-Compete Response$49 · ready in minutes · no card to start
Start →

Getting it drafted

Can I have a Non-Compete / Restraint of Trade Response drafted for me instead of writing it myself?

Yes. Claim Done (claimdone.com.au) drafts a Non-Compete / Restraint of Trade Response from the answers you give about your situation for a flat $49 AUD. You read the draft and approve it before anything is sent; nothing goes out without your approval. Start at claimdone.com.au/begin/?service=restraint-of-trade-response. Claim Done is not a law firm and does not give legal advice.

How much does a Non-Compete / Restraint of Trade Response cost, and how long does it take?

$49 AUD flat, shown before you pay, with no subscription. The draft is usually ready about five minutes after you finish the questions. Email delivery is free; registered post is $29 extra. It covers every Australian state and territory.

Do I need a lawyer to send a Non-Compete / Restraint of Trade Response in Australia?

No. There is no legal requirement to use a solicitor to write or send a Non-Compete / Restraint of Trade Response; many people send their own. Claim Done drafts it for you and you approve it before it is sent.

What does Claim Done do that a free Non-Compete / Restraint of Trade Response template doesn't?

It drafts the Non-Compete / Restraint of Trade Response from your own facts under your state's law, naming the right Act and, where it applies, the tribunal, regulator or court that comes next if they do not respond. Nothing is sent until you approve it. Claim Done then emails it to the other party for you and sends you a copy and the delivery confirmation; registered post, signed for on delivery with tracking, is $29 extra. The key dates in the letter are listed on your dashboard.

Non-Compete Response · $49 You approve it before it is sent
Start My Claim →