Topic > Case Study on Restricting Trade - 1361

This could be the effect of adapting to capitalism and the free market environment. In principle, the law does not provide any implied restrictions and employees are completely free to compete with the previous employer after dismissal. A restraint of trade may only be applicable where the employer has a genuine interest to protect. This would include goodwill and confidential information. Equity law may protect confidential information, but goodwill must be expressly protected. The Court has imposed some serious limitations on the enforceability of restrictive covenants. The employer's interests should not be protected for a longer period than necessary and the restriction should not be imposed over a wider geographical area than necessary. The law governing the restraint of trade is likely to develop through the implementation of flexible working practices and the accessibility of information. The current law on restrictive post-employment practices is illustrated in Beckett Investment Management Group Ltd. v. Hall. Restrictive covenants should only be imposed on senior staff who possess important confidential information and the terms of the restriction must be supported by appropriate consideration. This ruling suggests that 12 months appears to be the upper limit on the duration of the restriction. Limitations are welcome. Employees in junior positions or working in normal jobs should not be