Restraint Of Trade: How Does It Work?

More likely than not, a vast majority of employment contracts these days contain a restraint of trade clause. A restraint of trade clause, typically found in an employment contract, provides that the employee, after termination of employment, be restrained from performing similar work or accepting future employment in competition with his current employer, usually for a certain period of time after his termination of employment. There is no piece of legislation which regulates restraint of trade rights and thus is strictly a contractual arrangement between employer and employee.