Post-employment restraints: what you need to know

Post-employment restraints

In an employment context, post-employment restraints seek to protect an employer's business by preventing employees from engaging in a range of competitive activities during, and after, their employment. It is common for the employment contracts of mid to senior level managers and executive employees to include restraint of trade clauses.

The restrictions contained in a restraint of trade clause are usually framed by reference to:

• a geographical area;
• a period of time;
• defined industries, businesses or activities that the employee cannot be involved in; and/or
• classes of people (such as customers, clients or employees) with whom the employee is restricted from dealing.