If the Employment Relations (Restraint of Trade) Amendment Bill passes as it currently stands, it will prohibit the use of restraints of trade in employment agreement for employees who earn less than 3 times the minimum wage.  Although it remains to be seen whether this private member's Bill will pass through to royal assent in its currently drafted form, in the interim, this article reviews how restraint of trade clauses currently work in New Zealand and considers the Bill's proposed amendments.

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By Jin Park, Senior Solicitor.