Employment Law/Unfair Dismissal FAQ - Restraint of Trade Clause - Should I sign?

Date: March 04, 2011

Q. I have recently been approached by my former employer’s solicitor to reconfirm the restraint of trade clause which I signed whilst I was in their employ. Should I do so and does it prevent me from obtaining employment with another employer in the same or similar industry? What can you do to help me?

A. We would need to review the contract of employment with your former employer to check on the restraint of trade clause. We would then need to see whether it required notice or otherwise where you are contemplating joining another employer in a similar field. Once this is determined the question becomes what was the nature and extent of your role and whether it is sufficiently similar to the work that you were doing previously and whether you are taking with you any important intellectual property of your former employer on which the restraint of trade clause could operate. The validity of restraint of trade clauses depends upon reasonableness and all the factors associated with it need to be considered before you can be property advised.