Ever wondered what the 'restraint of trade' clause in your contract means?
What are the terms of that clause and if you resign, how long should you stay out of work because of this clause?
Moni Attorneys Incorporated's lawyer Natasha Moni explains the legal terms of this clause in the World of Work feature and answers questions from callers dealing with this clause.
The restraint of trade is signed at the beginning of the employment relationship.— Natasha Moni, Attorney Moni Attorneys Incorporated
The employer basically says if you go and work for the competitor or you decide to go and compete with me after our working relationship is terminated, then you need to stick to my rules of protecting my interests.— Natasha Moni, Attorney Moni Attorneys Incorporated
It is fair if you have agreed to it and it is fair if the area in which you are restrained and the time frame that you are restrained to is reasonable under the circumstances.— Natasha Moni, Attorney Moni Attorneys Incorporated
_Restraint of trade means:1. Legal contract between a buyer and a seller of a business, or between an employer and employee, that prevents the seller or employee from engaging in a similar business within a specified geographical area and within a specified period. It intends to protect trade secrets or proprietary information but is enforceable only if it is reasonable with reference to the party against whom it is made, and is not contrary to the public policy.2. Illegal contract that in any way colludes to damage another's opportunity or ability to carry out a business.Definitions sourced from Business Dictionary _
Callers shared their experiences, take a listen...