Hi guys,

I come from a smaller city in NZ, a bit quiet and consisting of about 40,000 people. I have a job interview for a position as a reg plumber/gasfitter coming up shortly and the word from former employees is that  the would be employer has a restraint of trade clause in his standard employment contract. I will find out for myself tomorrow.

Ive looked this up on google and it seems to say I cant work if I leave his employment as to protect his business secrets/knowledge although it also says it would be hard to enforce....but hey the person in question is also a current PGDB member so if I was really unlucky bye bye x3 tickets I have lol, or they could possibly make life difficult for me in NZ in other ways especially if I wished to be self employed!!       

If I were to work there I would recieve beneficial training most likely in gas appliance servicing as it is the only company in the city that provides this, how ever if I ever wish to leave a restraint of trade will apply.

 This means I will be un-able to work in my hometown where I am from for a period of two years allegedly at a radius of 80km allegedly so this will also include a lot of surrounding smaller towns also. I have a daughter in the same town that I see often and would rather not leave to live/work elsewhere if it didnt work out so this creates a problem....

The person in question has a awkward reputation in the city amongst most tradesman,a lot of his former customers ive met also were extremely dis-satisfied. Basically everyone ive ever talked to seems to have an issue with him that is not board related although I have never had a problem with him myself in the odd dealings in the past...but hey if it ends up its a harsh place to work which alot of places in this city seem to be....e.g The employers here always have the upper hand in recent times regarding contract negotiations as usually there is 1 job opportunity available at a time here so they can set the terms/conditions of work to their liking etc as they know we will take what we can get anyway. I have also been told one of the former employees went from registered to certifying in plumbing and gas and he was not offered any more money so left...bang...restraint of trade applies etc. See my point, they set the terms or have the ability to just lie during an interview to make their workplace seem attractive. My conscience tells me to stay away as ive heard too much bad information in the last 5years. I will go along to the interview though and apply benefit of the doubt, although I must admit I am skeptical. He is a talker, intelligent and has an answer for everything, ive been warned to use extreme caution.


What are your opinions thoughts on this???   I would be very interested to know if anyone else involved in plumbing and gasfitting has come across this before.   

Linkback: https://www.plumbers.nz/legal-matters-q-and-a/46/restraint-of-trade-employment-contract-clause-what-do-you-think/1119/

Hi Rodza

They beauty of individual employment contracts is that you can negotiate what goes in them over and above what is required by law. This is one of those clauses so if you want the job but don't like the clause then as for it to be removed and if the new employer won't remove it then its possibly a sign of what you are getting yourself in to. Seek advise 

Hi guys/Rozda, I would not sign with that clause in the contract, if you can`t get it removed then, If I were offered that job I would accept a starting date then not turn up (waste his time) if he called up to ask where you are he would be told to `stick it`, I think you should name and shame this guy to let all prospective employees know that way he may change his contract wording or go out of business,cheers   

If it is the one I am thinking of ....he was the only gasfitter on the panel that over seen my hearing, a scottish gasfitter at that....but either withheld or was unaware of the British Standards, that( had he known/told them about it) would have put me totally 100% in the clear.

Robbo I can assure you it is not something initiated by Master Plumbers.  Clauses like this are worthless in my opinion - they would be costly to enforce.  Seeing people leave you and set up on their own is not the end of the world - you can form a relationship with them and mutually benefit each other - isn't this how anyone is business has started out.  In an industry like this it is inevitable that if you train people there is a chance that one day they will leave you to 1) work for someone else and take a step forward in their career, or learn new skills b) go overseas c) start their own company - some of them may come back to you, or form a relationship where you can refer overflow work to them.   I would say this particular employer doesn't like competition and tries to squash it at the first hurdle - it could almost be viewed as bullying by contract - but you have a choice to negotiate or not work for someone like that.  I've never seen this clause in any contracts locally - it could be restricted to smaller regions where they feel the competition hitting their pockets harder perhaps?  Still a pretty shitty clause, and certainly one I would question before signing.

Got the contract , Clause reads like this...

3.2 Restraint Of Trade

In consideration for the Employer taking on the Employee the Employee shall not at any time during the term of this agreement or for a period of 12 months after the termination of this agreement for any reason other than proven unjustifiable dismissal or redundancy, carry on or be connected, engaged, or interested either directly or indirectly or alone or with any other person or persons, whether as principal, partner, agent, director, shareholder, employee, or otherwise in any plumbing and/or gasfitting business which is carried on within a radius of 80km of the business premeises of the Employer situated at....street....in....city etc without the express written consent of the Employer.   



I definitely wont work for this guy as long as a clause like this exists in his employment contract. Who knows if this means I basically would be unable to associate with friends/anyone from other companies in the trade in my area???Work boots are also not provided, and a day in lieu for working on a public holiday is also not part of the agreement. Also if I choose to leave within 12 months he reserves the right to bill me for any costs he has incurred during my employment...this could mean a lot of things and could become very expensive if he chose it to be.....I doubt he has/will attract any decent guys to work for him because of this and would explain why the only guys he has retained over the past few years are apprentices.

What does a guy have to do to get a reasonable deal huh? Geez im not asking much, Ive got a good history,im tidy,presentable, x3 reg tickets, heaps of tools, a bloody hard work attitude and this is the shit I get offered...sigh... 

Anyone else out there in the big Nz had this problem?

Hey Rodza  just remember you have skills and experience and in this day and age of a knowledge based society you have a good negotiation point with your tickets. One would hope there are outher employment options available in your area perhaps something better will come along thru the grape vine. Not all employers are out to exploit you unfortunately not all are living in the current century.

I recently had a job interview with a firm advertising for a registered plumber/drainlayer.  I believe that they were really after a labourer on a exemption. I have an allergy to peanuts. 

Mate individuals who are successful in this profession never look back full stop - they rarely lie in bed straight either, and they never use 3 words when they can use 400, put in in writing, bind it and charge you the equivalent of a small house for the privilege.  Laywers and politicans are this county's fecal matter dressed in a suit.  I would be ashamed if one of my kids said they wanted to be a lawyer or a politican in any of the existing parties.  I could however be proud of Wal if he stood for Parliament because he would then be the country's first honest politician.  They wouldn't know what to do with him.