Restraint of trade clauses attempt to restrict a former employee’s conduct once the employment relationship has ended. These clauses can prevent an employee from working for competitors or dealing with clients and staff, even after the employment has terminated. They can have serious consequences for your future employment and business opportunities.

Restraint of trade clauses differ widely. A typical restraint of trade clause will purport to restrain a former employee from:

• working for a competitor in a particular geographic area and for a specific length of time
• disclosing confidential information after the employment relationship has ended
• poaching or enticing any other employee away from the employer
• approaching, soliciting or accepting work from the former employer’s clients or customers.

Restraints often apply for a specified period of time and in a specified geographical area. They can apply to employees, partners and independent contractors.