Restraint of trade

RESTRAINT of TRADE…

1. Non-compete?

2. Non-solicitation?

3. Non-disclosure?

BUT what do they all mean?

At Brockhill & Usherwood Lawyers and as a specialist dispute lawyer with a dedicated suite of lawyers across building and financial disputes we commonly deal with RESTRAINT.

AND it is not just employment related issue!

Firstly, to put it simply:

Non-compete is that situation where you want to stop someone or are contractually precluded yourself from joining or starting a competing business. Maybe it should be called:

DON’T Compete!

Secondly, often the BIG one and the common one we often see alleged is ‘NON Solicitation’…WHY?

Well, because it can often attract substantial relief and damages. It really means contractual provisions designed to stop a person from approaching clients and employees after a contract ends. Maybe we can call it:

Don’t approach!

Finally, non disclosure is really the sleeping restraint. It can be the BIG one. Because, in one sense we can’t take what is not ours! So trade secrets, client lists and confidential information but remember not everything is a “trade secret”.

MOST of all. Nothing lasts forever and the lasting legal principle is around protecting a legitimate business interest. Not to stifle competition. Because a restraint must be no more than is reasonably necessary to protect a legitimate business interest.

Guys, this can apply to sale of business as much as employment and employees. And when it is employees it can also relate to business break ups and directors.

If you have ever hunted through the definitions seeking out the “Restraint Area” and “Restraint Period” you will know what I am talking about.

Getting advice on what is reasonable because there are probably 3 or 4 cascading options…really requires industry specific legal advice. If you are in particular in the building, professional service and financial service industries REACH out so you are informed and protected.

FINALLY, FOR ANY INTERESTED IN some more DETAIL particularly on non compete. Here is an easy link to the Treasury announcement related to worker restraints from the 2025-26 Budget.

This article is a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Tagged as:

• building disputes