Question for GP's - Non-compete clause 10Km 4yrs?!
#1
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Joined: Oct 2017
Posts: 2
Question for GP's - Non-compete clause 10Km 4yrs?!
Hi,
I'd appreciate it if any of the General Practitiners of the site could share their experience/ideas about what a reasoanble non-compete clause could be.
My brother is a General Practitioner, recently migarted from France to South Australia and is considering signing a contract with a Family Practice in Adelaide.
There is a non-compete clause in the contract to stop him from setting up a practice And/Or working for another practice in the 10 kilometers raduis of the practice at the time of termination of the contract, for the duration of 4 years. Adelaide is not a big city, and 10 kilometers seems to be too excessive, particularly considering it's for 4 years.
He obviously intends to negotioate on these terms before signing the contract; however he'd like to know what a fair length of time for a non-compete clause in a city like Adelaide usually is, and for how long.
Thanks in anticipation.
Best,
Beckie
I'd appreciate it if any of the General Practitiners of the site could share their experience/ideas about what a reasoanble non-compete clause could be.
My brother is a General Practitioner, recently migarted from France to South Australia and is considering signing a contract with a Family Practice in Adelaide.
There is a non-compete clause in the contract to stop him from setting up a practice And/Or working for another practice in the 10 kilometers raduis of the practice at the time of termination of the contract, for the duration of 4 years. Adelaide is not a big city, and 10 kilometers seems to be too excessive, particularly considering it's for 4 years.
He obviously intends to negotioate on these terms before signing the contract; however he'd like to know what a fair length of time for a non-compete clause in a city like Adelaide usually is, and for how long.
Thanks in anticipation.
Best,
Beckie
#2
Forum Regular
Joined: Aug 2016
Location: Vancouver, Canada
Posts: 183
Re: Question for GP's - Non-compete clause 10Km 4yrs?!
I'm not a GP, but the general legal principle is that a non-compete clause needs to be reasonable and proportionate in the circumstances. 10km and 4 years sounds like an ambit claim to me.
I'd definitely push back on this. Generally speaking the law favours the party bound by the non-compete clause, as the law doesn't like unreasonably to restrain people from earning a living. In terms of facts to arm oneself with, checking out how many other GPs are in various geographical proximities to each other could be helpful. If there are multiple GPs within a couple of kms of each other, that would be a good indication that 10km is definitely overreaching.
While I cannot comment on GPs specifically, as for time periods, up to 12 months is a reasonable restraint period in relation to many other fields of endeavour.
I'd definitely push back on this. Generally speaking the law favours the party bound by the non-compete clause, as the law doesn't like unreasonably to restrain people from earning a living. In terms of facts to arm oneself with, checking out how many other GPs are in various geographical proximities to each other could be helpful. If there are multiple GPs within a couple of kms of each other, that would be a good indication that 10km is definitely overreaching.
While I cannot comment on GPs specifically, as for time periods, up to 12 months is a reasonable restraint period in relation to many other fields of endeavour.
#3
Re: Question for GP's - Non-compete clause 10Km 4yrs?!
This guide is 7 years old, but is specific to South Australia and GPs so may be of some use http://www.futureplanner.com.au/~fut...ctices_law.pdf
#4
Forum Regular
Joined: Aug 2016
Location: Vancouver, Canada
Posts: 183
Re: Question for GP's - Non-compete clause 10Km 4yrs?!
This guide is 7 years old, but is specific to South Australia and GPs so may be of some use http://www.futureplanner.com.au/~fut...ctices_law.pdf
The summary of the law on restraints of trade is still generally accurate and helpful.