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The employees walked out and set up a rival company after their employer allegedly failed to honour purchase agreements.
The Employment Relations Authority was out of line when it granted an injunction against former employees who walked out of a business and created their own rival company, a judge has found. In October, ERA member Geoff O’Sullivan granted an urgent application by NZ Technology Group Hawke’s Bay Ltd, that required the four former employees to comply with their employment contracts, including restraint of trade, breach of confidentiality, and non-solicitation clauses. The dispute has been the subject of numerous applications and submissions to the Employment Court, with Employment Court Judge Bruce Corkill granting an application by NZTG Hawke’s Bay to freeze funds held in bank accounts held by the men and their newly formed company, Engage Technology.