Mel owns Brazilion Beauty, a beauty salon in Queensland.She accepts Debbie as an apprentice stylist.Included in Debbie's contract is a clause that states that in the event of termination of her employment, Debbie will not be able to be employed by any other beauty salon in Queensland or begin her own beauty salon in Queensland for a period of 20 years.After five years with Brazilion Beauty, Debbie leaves the salon.Which of the following is the most likely outcome?

Question

Quizplus · Accepted Answer

The restraint of trade clause in Debbie's contract is too unreasonable as it prohibits her from working in the same industry in Queensland for a period of 20 years. Courts generally do not enforce such clauses as they are considered to be against public policy and restrict a person's ability to earn a livelihood. Therefore, Debbie will likely not be bound by the clause and will be able to work for other beauty salons or start her own salon in Queensland.

Mel Owns Brazilion Beauty, a Beauty Salon in Queensland