An employer can enforce a restraint of trade clause in a contract of employment with an employee,provided it is not an attempt to limit competition.

Question

Quizplus · Accepted Answer

Restraint of trade clauses can be valid and enforceable, as long as they are reasonable and necessary to protect the legitimate interests of the employer's business, and do not unduly restrict the employee's ability to work in their field or trade. However, if the sole purpose of the clause is to limit competition, it may be deemed unenforceable as being against public policy.

An Employer Can Enforce a Restraint of Trade Clause in a Contract