Are restraint of trade clauses in employment contracts valid?
The validity of a restraint of trade depends on the facts of the specific clause(s) in question.
A court begins with the assumption that a restraint of trade clause is unenforceable as a matter of public policy. As stated by the High Court of Australia in Buckley v Tutty (1971) 125 CLR 353 at 380:
“Unreasonable restraints are unenforceable as it is contrary to public welfare that a person should be unreasonably prevented from earning a living in whichever lawful way he chooses and that the public should be unlawfully deprived of his services.”