Contract restrictions

A 12-month restriction on former employees from having dealings with the company's clients was lawful, according to the High Court.

Employment contracts sometimes contain clauses which seek to restrict employees from working for competitors either during their employment or even after it has ended. These clauses (sometimes referred to as "restrictive covenants") occasionally come before the courts, because the employee attempts to have the clause nullified, on the grounds that it restricts fundamental rights to freedom to work. However, in this latest case the judge ruled that a 12-month restriction on former employees having dealings, not just with clients of their ex-employer, but with potential clients, was a valid restriction.