Restraint Clause for Employment Agreement


A restraint clause in an employment agreement typically applies when an employee leaves the business. The employer can enforce a restraint clause to the extent that it is ‘reasonably necessary’ to protect your legitimate business interests.

The restraint clause prevents a departing employee from working for a competitor in any capacity for a specified period. Other restrictions also include, not soliciting a former employer’s clients, customers or staff, and not enticing or encouraging an employer representative from leaving their engagement with the employer.

If your business would benefit from a restraint clause purchase the clause in addition to applicable relevant agreement and insert it in an appropriate position within the agreement.