67H Secondary employment provisions

(1)

In this section, a secondary employment provision is a provision in an employee’s employment agreement that—

(a)

prohibits or restricts the employee from performing work for another person; or

(b)

prohibits or restricts the employee from performing work for another person without the employer’s consent.

(2)

A secondary employment provision must not be included in an employee’s employment agreement unless—

(a)

the employer has genuine reasons based on reasonable grounds for including the provision; and

(b)

the reasons are stated in the employee’s employment agreement.

(3)

For the purposes of subsection (2)(a) and without limiting that provision, a genuine reason may relate to—

(a)

protecting an employer’s commercially sensitive information; or

(b)

protecting an employer’s intellectual property rights; or

(c)

protecting an employer’s commercial reputation; or

(d)

preventing a real conflict of interest that cannot be managed without including a secondary employment provision.

(4)

A secondary employment provision in an employee’s employment agreement must not—

(a)

prohibit the employee from performing work for another person unless it is necessary having regard to the reasons for which the provision is included; or

(b)

restrict the employee from performing work for another person to a greater extent than is necessary having regard to the reasons for which the provision is included.

(5)

This section does not limit or affect the law relating to restraint of trade provisions.

Section 67H: inserted, on 1 April 2016, by section 9 of the Employment Relations Amendment Act 2016 (2016 No 9).