Grey Advertising (New Zealand) Ltd v Marinkovich

Grey Advertising (New Zealand) Ltd v Marinkovich is a notable New Zealand legal case concerning restraint of trade clauses in employment contracts. The case examined the enforceability of a restraint of trade clause within an employee's contract, specifically focusing on its reasonableness and whether it was justifiable in protecting the employer's legitimate business interests. The court considered the duration, geographical scope, and activities prohibited by the clause in relation to the specific role and responsibilities of the employee (Marinkovich). A key aspect of the legal reasoning focused on balancing the employer's right to protect its confidential information and client relationships against the employee's right to free movement in the labor market. The court ultimately determined that the restraint of trade clause was unreasonably wide and therefore unenforceable, finding that it went further than was necessary to protect Grey Advertising's legitimate interests. The case serves as an important precedent in New Zealand law for interpreting and applying restraint of trade clauses, emphasizing the need for such clauses to be narrowly tailored and demonstrably necessary to safeguard specific, protectable business interests. It highlights the court's willingness to scrutinize such clauses to ensure they do not unfairly restrict an employee's ability to earn a livelihood.