11/06/2026
A restraint of trade clause is not a shortcut for protecting every part of a business.
It should not be copied and pasted into every employment contract without thought.
A junior employee with limited client exposure may not require the same restraint as a senior executive, sales lead or employee with access to confidential strategies.
When employers use restraints too broadly, they may create risk for themselves.
A restraint is more likely to be challenged if it is excessive, vague or disconnected from a real business interest.
Employers should ask:
What exactly are we protecting? Is this employee exposed to that information or relationship? Is the period reasonable? Is the geographic area reasonable? Is the scope of work restricted too widely? Can we justify this if challenged?
A restraint should be a precision tool, not a blanket clause.
The stronger the connection between the restraint and the interest being protected, the stronger the employer’s position is likely to be.