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Restraint of Trade

Restraint of Trade

Many contracts of employment contain terms that seek to limit what work a person may do after they leave a job. Turner Freeman Lawyers is able to advise its clients on restraints and act for them in claims challenging restraints in place.

What is a restraint of trade?

Employment contracts often contain clauses that seek to control the behavior of the worker after they have left the employment. These provisions are generally known as restraints of trade.

The provision will often prevent a departing employee or partner setting up in competition and working for competitors. Restraint of Trade clauses are important to businesses that heavily rely on client relationships and where employers are trying to protect their legitimate business interests.

Turner Freeman can assist you in ensuring that you make the right decision to ensure you are not in breach of any restraint of trade clauses.

Is the clause reasonable?

Matters which the court will take into account in deciding whether a restraint of trade clause is reasonable include:

  • Time period of restraint: the restraint must be for a period of time which is necessary to protect the business interest;
  • Geographical area of restraint: the area covered by the restraint must be reasonable, and not prevent the employee from working altogether;
  • The restraint must protect a legitimate interest of the employer, for example its customer lists or goodwill.

If you are an employee leaving employment and are concerned about what restrictions may be imposed on you upon termination, Turner Freeman Lawyers will assist you in reducing the likelihood of you being liable for breach of any restraint of trade clause.

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