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

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.

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

Re: Question for GP's - Non-compete clause 10Km 4yrs?!
 

:goodpost:

The summary of the law on restraints of trade is still generally accurate and helpful.