Employsure Pty Ltd v McMurchy [2021] NSWSC 139

Supreme Court New South Wales

Medium Neutral Citation: Employsure Pty Ltd v McMurchy [2021] NSWSC 139 Hearing dates: 5, 8 February 2021 Date of orders: 8 February 2021 Decision date: 24 February 2021 Jurisdiction: Equity - Duty List Before: Parker J Decision: See [73] Catchwords: EMPLOYMENT LAW – contract – interlocutory restraint of trade – employee restrained from working elsewhere during "employment" by employer – employee purports to terminate employment claiming 28 day notice period and then leaves after 28 days – prima facie case – contract provides for three month notice period – subsequent variation refers to earlier contract containing 28 day notice period – construction principle in Fitzgerald v Masters – whether "employment" continues after employment relationship ceases – whether employee's notice of termination was wholly ineffective or effective after three months – injunction granted against employment with new employer for three months from date of employee's notice Legislation Cited: Uniform Civil Procedure Rules 2005 (NSW), r 36.1 Cases Cited: Automatic Fire Sprinklers v Watson (1946) 72 CLR 435 Burton Group Ltd v Smith [1977] IRLR 351 Fardell v Coates Hire Operations Pty Ltd [2010] NSWSC 346 Fitzgerald v Masters (1956) 95 CLR 420 Graham Barclay Oysters Pty Ltd v Ryan (2002) 211 CLR 540 Gunton v Richmond-upon-Thames London Borough Council [1981] Ch 448 Hitech Contracting Ltd v Lynn (Supreme Court (NSW), Austin J, 5 June 2001, unrep) Kolback Securities Ltd v Epoch Mining NL (1987) 8 NSWLR 533 Mannai Investment Co Ltd v Eagle Star Life Assurance Co Ltd [1997] AC 749 Morton Suntour Fabrics v Shaw (1967) 2 ITR 84 Pittmore Pty Ltd v Chan [2020] NSWCA 344 Purcell v Tullett Prebon (Aust) Pty Ltd [2010] NSWCA 150 Tullett Prebon (Australia) Pty Ltd v Purcell (2008) 175 IR 414 Warramunda Village Inc v Pryde (2001) 105 FCR 437 Texts Cited: GJ McCarry, "Termination of Employment Contracts by Notice" (1986) 60 Australian Law Journal 78 Mark Irving, The Contract of Employment (LexisNexis Butterworths Australia, 2012) Category: Procedural rulings Parties: Employsure Pty Limited (Applicant/Plaintiff) David McMurchy (First Respondent/Defendant) ELMO Software Limited (Second Respondent/Defendant) Representation: Counsel: P Moorhouse (Applicant) P Lowson (Respondents)