Restraint of Trade Agreements

How to develop a restraint of trade clause

Restraints of Trade Agreements are a critical element in protecting the legitimate business interests of employers, particularly in industries where confidential information, client relationships, and specialised skills are key. Saines Legal offers extensive expertise in drafting, reviewing, and enforcing these agreements, ensuring they are both legally robust and fair to all parties involved.

Understanding Restraints of Trade

Restraint of trade clauses are used to restrict an employee’s actions both during and after the period of employment. These clauses typically cover non-competition, non-solicitation, and confidentiality, aiming to protect the business from potential competitive harm. However, for such clauses to be enforceable, they must be reasonable and proportionate to the interests being protected.

Balancing Interests

The key challenge in crafting these agreements is to balance the need to protect the business without unduly infringing on an employee’s right to earn a livelihood. Saines Legal’s approach involves a nuanced understanding of both these aspects, ensuring that restraints are reasonable in scope, duration, and geographical area.

Legal Framework in Australia

In Australia, the enforceability of restraints of trade is governed by common law principles and, in some cases, specific state legislation. Courts tend to scrutinise these clauses closely, and any restraint deemed excessive or unfair is likely to be unenforceable. Saines Legal stays abreast of the latest legal precedents and trends, providing clients with the most effective and defensible agreements.

Drafting Effective Agreements

Saines Legal’s expertise includes:

  • Analysing the specific needs and risks of the business to determine appropriate restraints.
  • Drafting tailored restraint clauses that are clear, precise, and legally enforceable.
  • Advising on strategies to protect confidential information and client relationships effectively.
  • Reviewing and updating existing agreements to align with current legal standards and business needs.

Navigating Disputes and Enforcement

Enforcing a restraint of trade clause can be challenging. Saines Legal not only assists in drafting enforceable clauses but also represents businesses in disputes arising from these agreements. This includes providing strategic advice on dispute resolution and, if necessary, litigation.

How complex can a restraint of trade clause be? 

Restraint of trade agreements often intersect with other areas of law, such as intellectual property and privacy law. Saines Legal offers comprehensive advice that considers all relevant legal dimensions, ensuring holistic protection for your business.

Restraint of Trade Clauses Require Specialist Legal Advice. 

Restraints of Trade Agreements are a complex yet essential tool for protecting business interests. Saines Legal brings a depth of expertise and a balanced approach to these agreements, ensuring they are legally sound, reasonable, and effectively safeguard your business. For detailed and experienced legal guidance on Restraints of Trade, turn to Saines Legal.

Contact Us Today