Restraint of trade clauses in employment contracts are critical to protecting legitimate business interests of an employer. Restraint of trade clauses are enforceable to the extent that the restraint is reasonably necessary to protect the legitimate business interests of the employer, and this is assessed on a case by case basis.
In assessing whether a restraint of trade clause is fair and reasonable, the Court may have regard to a number of factors including:
- the nature of the work;
- the employee’s seniority in the employer’s business;
- whether the position involved exposure to confidential information;
- the employer’s interests capable of protection;
- the benefit to the employer and the employee of agreeing to the restraint;
- the scope and duration of the restraint, including the time and area included in the restraint
- whether the restraint of trade is not more than is adequate to protect the employer’s legitimate business interests.
Contact us if you would like us to assist in drafting your Employment Contracts & Restraints of Trade or if you would like us to enforce a restraint or apply for an urgent interlocutory injunction in the case where confidential protected information is at risk.