The following information is brought to you by a lawyer from David Chang Legal. Interview with Ji Hoon Chang.
A restraint clause in an employment agreement typically applies when an employee leaves the business.
An employer can enforce a restraint to the extent that it is reasonably necessary to protect their legitimate interests. Whether a provision is reasonably necessary will depend on its wording and the facts of a particular situation.
Generally, a court views a non-solicitation clause more favourably as it does not seek to limit an individual’s right to work. It’s also easier to see how this clause reasonably protects a company’s legitimate business interests.
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