| Commentary

(3) Non-dealing covenants

| Commentary

(3)     Non-dealing covenants

Non-solicitation covenants require active steps to be taken by the departing employee to entice or induce clients. However, such covenants are sometimes difficult to prove and police, and it is common to find in employment contracts a broadening of the protection of the employer's trade connections through a client non-dealing covenant. Such a covenant will prohibit the provision of services or goods and other dealings with defined clients, regardless of who made the approach. In determining the reasonableness of a non-dealing clause, similar considerations will apply as in the case of a non-solicitation clause. However, given that

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