Is discussing your salary legal?

Forums › Off topic › Is discussing your salary legal?

1 | 2

nzkc

1571 posts

Uber Geek

#3048475 10-Mar-2023 10:33

Linux: The " restraint of trade clause " is a joke and will never be enforced

Whilst this would hold true for most cases it has certainly been enforced. A reasonably recent example was for Tova OBrien: https://www.nzherald.co.nz/entertainment/tova-obrien-loses-restraint-of-trade-era-case-against-former-workplace-discovery/GAZJYRDEUHOOBE5WWGJUTQYRJI/

mkissin

388 posts

Ultimate Geek

ID Verified

#3048600 10-Mar-2023 11:52

nzkc:

Linux: The " restraint of trade clause " is a joke and will never be enforced

Whilst this would hold true for most cases it has certainly been enforced. A reasonably recent example was for Tova OBrien: https://www.nzherald.co.nz/entertainment/tova-obrien-loses-restraint-of-trade-era-case-against-former-workplace-discovery/GAZJYRDEUHOOBE5WWGJUTQYRJI/

This is true, but it's a very specific case, and the restraint of trade clause only ended up being 7 weeks, down from (an apparently unreasonable) 12 weeks.

I've had companies try to put a boilerplate 2-year restraint on me, which would have stopped me working entirely (I'm in a very small field). It's incredibly unlikely that would be enforced, according to an employment lawyer I had look over the contract.

Senecio

2710 posts

Uber Geek

ID Verified

Lifetime subscriber

#3048604 10-Mar-2023 11:59

scuwp:

It's not just salary, it's also conditions and overall package. For example, I work with some people who have a 35 hour week, while I have a 40 hour week, is our pay different? I simply don't know. Other employment benefits also come into the equality or 'value' conversation, such as work flexibility, insurance, allowances for tools/equipment...I could go on. Some of these things are easier to discuss than simply $$.

Really good point. The base salary is just the start. The total package is what's important which may include incentive payments, or perks like working hours or health insurance etc.

At this point in my career I would value a shorter working week over more pay, but that wasn't always the case.

frankv

5680 posts

Uber Geek

Lifetime subscriber

#3048690 10-Mar-2023 15:42

There are 2 reasons why your employer wouldn't want employees sharing their salary information...

1. An employee is being paid less than what they're worth

2. An employee is being paid more than what they're worth

Handle9

11386 posts

Uber Geek

Trusted

Lifetime subscriber

#3048818 10-Mar-2023 21:09

mkissin:

nzkc:

Whilst this would hold true for most cases it has certainly been enforced. A reasonably recent example was for Tova OBrien: https://www.nzherald.co.nz/entertainment/tova-obrien-loses-restraint-of-trade-era-case-against-former-workplace-discovery/GAZJYRDEUHOOBE5WWGJUTQYRJI/

This is true, but it's a very specific case, and the restraint of trade clause only ended up being 7 weeks, down from (an apparently unreasonable) 12 weeks.

I've had companies try to put a boilerplate 2-year restraint on me, which would have stopped me working entirely (I'm in a very small field). It's incredibly unlikely that would be enforced, according to an employment lawyer I had look over the contract.

Restraints of trade are complex and require the restraint to be limited in geography and time to a reasonable level. Two years is clearly unreasonable and wouldn't stand up court. There also needs to be a business purpose, which is more than just we don't want you to go to a competitor.

Essentially you can restrain a sales person or senior manager from approaching customers within their previous territory for a few months, you can't restrain an engineer from being an engineer for a competitor.

https://www.employment.govt.nz/workplace-policies/restraint-of-trade/

1101

3122 posts

Uber Geek

#3051670 18-Mar-2023 19:42

Linux: The " restraint of trade clause " is a joke and will never be enforced

Ah, history proves you wrong . :-)

It can be enforced , only in very specific circumstances.
And has been enforced in NZ courts .

But
employers can sue you for breech of contact if you break restraint of trade. Has happened in NZ
Employer can threaten legal action against new employers. Has happened , my old boss did this to their (ex) sales rep . Made things very difficult for him.

My old restraint of trade was completely over the top & they later admitted it was just a bluff (ie unenforceable as it was written)

1 | 2