Restraint of Trade (Contract Law)

Restraint of Trade is an accessible examination of the law relating to restraint of trade between employers and employees. It explains how restrictive covenants work in practice, both during and after employment. The author first examines express clauses, looking at the six principal problems which may be faced when considering whether a covenant potentially in restraint of trade is enforceable or not after termination of employment:

• Does the clause protect a legitimate proprietary interest which will normally be a trade secret or trade connection?
• Is the clause reasonable between the parties?
• Is the clause reasonable in the public interest (an issue not normally relevant in employment law)?
• If part of the clause is invalid, may it be severed?
• How is the covenant to be construed?
• If the term is valid, which remedy or remedies may the employers obtain?

The author then goes on to consider covenants during employment, implied terms both during and after employment, various drafting tips, and the effect of the Transfer of Undertakings (Protection of Employment) Regulations 1981. With coverage of the definition of particular words in the covenant, the consequences of invalidity of a clause, and the effect of wrongful dismissal, Restraint of Trade will be a useful reference for practitioners of employment or contract law, in-house lawyers, company secretaries and human resource managers.