Friday

Restraint of Trade

Restraint of Trade
What is the usual length of Restraint of Trade when company is trying to protect their business interest by restraining an employee from joining a competitor within 1 year from the date of leaving the company? Can this clause be applied to an engineer who doesn't really have access to significant confidential information but received rigorous trainings on critical business procedures/ processes?


Again, this is an agreement and if both party has agreed and signed on the documents, there isn't any right or wrong answer for that. The only way to decide whether breach of contract is to decide in Court. : )

From my understanding, the restraint of trade shall indicate the geographical area (eg. in Asia, in Singapore), period (eg. 6 months, 12 months) and also the type of trade (eg. Chemical, Construction), otherwise, the clause is not valid. You may need to seek legal advice on this matter.