Home - Restraint clause application
December 01, 2020 on chapter Restraints of trade

Does a restraint clause hold up if the employee was retrenched?

The validity of your restraint clause will depend on both the terms of the contract and the reasonableness of the restraint. Generally, redundancy provisions do not affect the enforceability of a restraint clause. Rather, a restraint will be unenforceable where the employer has repudiated the employment contract or where the restraint does not reasonably protect legitimate business interests.

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