Contractual restraint of trade clauses are common in employment agreements. The clauses are there to protect the interest of the business owner should an employee resign and take up business in competition with the employer and or leave employment to work for a competitor. A business owner has an interest in protecting the goodwill of its business that it has built up over the years. Generally however restraint of trade clauses are invalid because they are considered to be against the public interest. It is in the public interest to encourage competition. So what can a business do to protect its goodwill when an employee leaves with the threat of taking all of the customers of the business?
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