Restraint of Trade

Many employment contracts incorporate a restraint of trade provision (sometimes referred to as a ‘no compete’ clause). The purpose of this is to protect a legitimate business interest of the employer which may include business connections or trade secrets for example.

Clinch Long Letherbarrow have significant expertise in drafting effective restraint of trade provisions on behalf of employers.

We are also skilled in assisting individual clients who are defending a claim brought against them by a former employer.

Services for employers

 

For a restraint of trade provision to be upheld by the courts, it must satisfy a number of provisions. It is important to note that ‘standard terms’ may be inadequate in safeguarding the particular business interests that require protection, and they may also fail in court.

Key considerations of the court are that the restraint of trade provisions set out reasonable geographical, time and conduct limitations which are to be adhered to by the employee.

For this reason, it is vital for employers to seek expert legal advice in order to ensure that a restraint of trade provision is drafted in a way that ensures it does the job it is meant to do.

Clinch Long Letherbarrow are experienced in advising on and drafting tailored restraint of trade terms that are more likely to satisfy the courts and to protect the interests of a business.

In the event that an employee breaches these terms, we develop a strategy for our employer clients to help stop the offending conduct or to launch prosecution proceedings where warranted.

Services for individuals

 

Clinch Long Letherbarrow also acts for individuals in dispute with their employer or former employer in relation to restraint of trade. We review the circumstances in which the conflict has arisen and the details of the employment contract. This enables us to determine the most effective strategy for the matter to be resolved as quickly as possible.

In all cases, we carefully review all considerations and make a clear and direct assessment of the course of action that is in our clients’ best interests.

Contact us today and benefit from our insight and expertise in the complex area of restraint of trade.