Restraint of trade

Usually a restraint of trade is a promise that an employer gets from an employee which restricts the work the employee can perform after finishing work for the employer. Most commonly, a restraint of trade states that an employee will not work in a certain industry, within a certain geographical area for a certain period of time.

Restraints of trade that are unnecessarily wide are often found to be unenforceable in courts. For more information, see our fact sheet Restraints of trade: can your employer restrict what you do during and after your employment?.