Restraint of Trade Explained
Competition during the life of the employment contract will usually fall foul of the implied duty of fidelity imposed on the employee and amount to a breach of contract. It may also enable the employer to obtain an injunction against a third party, restraining them from employing the employee while the original contract is still in force. A distinction, therefore, must be drawn between competition during the employment period and compensation once the relationship has ended.Get Legal Advice
“… I worked for an estate agent and my contract of employment contained a number of restrictive covenants… one of these restricted me from working for any other estate agent within a three mile radius [of my employers office] for a period of 3 months following termination of employment…all of the estate agents in the city are based within this 3 mile exclusion zone…I have applied for a new job with one of them but my former employers have found out and they are threatening to enforce the covenant…”
“.. I run a small marketing business… one of my former employees has left to start up on his own…he has already wooed away some of my staff, but now I have discovered he has been contacting my clients in an attempt to undercut me. He is ruining my business…is there anything I can do…”
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