Home / Employment Law / Restraint of Trade
An employment contract may include terms that seek to limit what an employee can do once the employment relationship ends. Often restrictions are sought to prevent an employee from gaining alternative employment with a competitor, or to prevent the solicitation of staff or clients from the business of an employer. Restrictive covenants can also seek to limit the geographical location that the former employee works, and the non-disclosure of certain information obtained during the employee’s employment.
However, the court recognises that restrain clauses can place a significant limitation on an employee’s ability to work and it is therefore up to the employer to convince the court that the clause is enforceable. When determining the enforceability of a restrain clause, the court will look at whether the restrain is reasonably necessary for the protection of the employer’s legitimate interests.
Sibley Lawyers can assist you in obtaining advice on the enforceability of a restrain trade clauses.
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