Are your restraint of trade clauses enforceable?

By Jevita Derby

OVERVIEW

Restraint of trade clauses have traditionally been difficult to enforce. Such restraints are presumed to be unenforceable unless the employer can establish that the clause is reasonable.

For example, a restraint of trade clause would not be enforceable if it existed merely to protect the employer from competition from an ex-employee, or to prevent a valued employee from being employed elsewhere.