Restraints of Trade
In Show 092 – Restraints originally broadcast on Facebook Live on Wednesday 22 May 2018 we explore this interesting topic.
Today we’re going to discuss more about restraints of trade. Basically, employers use them to protect themselves from employees who have left the business. They prevent former employees from working for a competitor for a defined period of time. They can also prevent former employees from talking with clients.
One of the key parts of restraints of trade is whether or not they are reasonable. If they are determined to not be reasonable they can’t be enforced. The courts are the ones who will make that determination. They can’t interfere with an individual’s right to profit from their own labour.
When assessing whether restraint of trade is reasonable the court will look at the duration of the agreement, the geographical area it applies in and the activities of the employee it seeks to control.
Some people think that restraints of trade are worthless. That’s not true. They just have to be structured correctly so that they hold up in court.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.