Restraints of trade
How can restraints of trade protect your business interests?
Restraints of trade protect your business by limiting former employees’ ability to compete, solicit clients, or use confidential information after they leave your company.
A well-drafted restraint of trade clause is essential for safeguarding your trade secrets, client relationships, and competitive advantage.
At MDC Legal, we ensure that your restraint of trade agreements are enforceable, fair, and tailored to your specific business needs. Our expert team drafts, reviews, and advises on these restraint clauses, helping you mitigate risks and protect your business from potential harm caused by former employees joining competitors or starting rival businesses.
What you need to know
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Issues with restraints of trade for employees
When signing an employment contract, it’s crucial to understand any restraint clauses and the obligations they may impose once your employment ends.
Not all restraints of trade are enforceable, even if your employer or their lawyer claims they are. However, if enforceable, these clauses can have serious consequences. Defending against them, even if they’re ultimately unenforceable, can be costly and time-consuming.
Employers seeking to enforce a restraint of trade may apply for an interlocutory injunction (court order) to prevent you from working for a competitor, running your own business, or joining a new employer. These proceedings are often urgent, expensive, and leave employees with limited options but to defend themselves.
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Issues for employers – protect your confidential information, intellectual property and goodwill
Protecting your business’s legitimate interests in goodwill, client relationships, and confidentiality is essential.
Carefully crafted restraint clauses in key employees’ contracts are crucial for this protection. Getting these restraint clauses right is vital.
Our expert employment lawyers can help you draft enforceable restraints of trade that safeguard your business, including your confidential information, intellectual property, and goodwill.