This Practice Note outlines the main categories of legitimate business interest which may be protected by way of an appropriate post-termination restriction (restrictive covenant) in the employment context.

As noted elsewhere (see Practice Note: Restraint of trade in employment), a post-termination restriction will be unlawful, and therefore unenforceable, unless the party attempting to enforce it has a legitimate business interest to protect.

An employer will not be able to enforce a restriction that seeks merely to prevent its former employees from competing against it. Preventing competition is not, of itself, sufficient to amount to a legitimate business interest for these purposes. The general approach is that competition is in the public interest and is therefore something to be encouraged. Similarly, an employee who, through training by the employer, has gained general skill and knowledge that will assist the employee in competing when they leaves employment will generally be permitted to use that skill and knowledge to compete.

Rather, an employer must show that it has some more defined business interest that requires protection. Essentially, the employer must show that there