Restraint of Trade

Q        How enforceable are restraint of trade clauses in a contract of employment?

A        Restraint of trade clauses are notoriously difficult to enforce.  The basic principle is that you cannot prohibit someone from earning a living but you do have the right to protect your business from legitimate threats.  If you want to rely on the enforceability of a restrictive covenant you should make sure that it's reasonable and necessary.  It may also be appropriate to ask key employees to sign business protection letters rather than have a blanket policy of including restraint of trade clauses in every contract of employment.