Work Contracts

My mum works for a backpackers and has done for 9 years. They just sold the backpackers to new people.

They gave mum her contract last night and in it is a clause saying if they leave the backpackers they are not allowed to work in the hospitality industry (a 10km radius) for 12 months!!

Can they do this? If she refuses to sign, can they fire her?

ETD: For my missing letters

Edited by KylahsMum

I'm pretty sure they can ask, she doesnt have to sign and they cant fire her. 10km radius is abit extreme and not to put down your mother, working in a backpackers isnt an invaluable/critical to the business role so I would see it as OTT.

I have had that in some of my contracts and I flatly refused saying that if I signed that and something happened that changed my circumstances I wouldnt be able to work in pretty much all of chch.

I have also heard (and this may be totally wrong) that these clauses dont stand up well in court.

I would say 9and this is just what I wuold do) that if she is happy with the rest of her contract she can jsut cross that clause out, initial it and sign.

But she may not need to even sign at all....although I think then they could not give her pay rises etc.

but I am not an employment lawyer so could be WAY OFF TRACK. You could probably ring the dept of labour or check out their website.

The new owners are real creeps, the guy that bought it has my mum afraid to be in the room alone with him because he is very touchy feely. May be nthing but it makes her feel really uncomfortable. Shes too soft to say anything.
Isnt 10km the whole of christchurch!?

Edited by KylahsMum

from what i understand, it is very hard to hold up in court because the old employer cannot stand in the way of a person's right to earn a living.   would be a different story if she was to open her own backpackers though.

It would be very hard to hold up in court, because it's detrimental to her future and overly harsh (10km is HUGE). It's called a restraint of trade clause. You usually see it in contracts where the position is quite vital and involves sensitive material within that industry (such as restaurant owners who have sold the business having a restraint of trade clause within the agreement for sale and purchase with no competition to be set up within say 5km of the original restaurant) - no offence intended, but your mum's position doesn't really fit that bill!!

Cross it out and sign it - if they refuse to sign, then give the Dept of Labour (Employment Relations Service) a call. They have a tollfree number in the local phone book I think.

Seems very OTT for a cleaner but then again maybe they think that in her role she could have access to sensitive material.

It's certainly not unheard of. (think the Hell Pizza/Pizza Hut uproar a year ago or so)

Yep I have one ... however I doubt it would be enforced although it doesnt have a radius it is more that I cant go and work for the competition or set up in competition for a certain period of time.

If she wants a job with the new owners she'll need to sign a new Employment Agreement. Restraint of Trade are hard to enforce as you are not legally allowed to deny someone the right to earn a living in their chosen profession. Any hospitality role within 10km for a whole year is pretty extreme. Also, you need to pay the person during this period (as they have a right to earn a living). I doubt they'd take a cleaner to court to impose a restraint of trade.