Restraint of Trade Lawyers
Defending Your Future

Leaving a job can raise questions about your next move, especially if a restraint of trade clause is involved. Our role is to give you clear, strategic advice on where you stand, protect your rights, and ensure any restrictions are fair, enforceable, and aligned with the law.

Protecting Your Right to Work, Your Business, and Your Future

A restraint of trade clause in an employment contract can restrict where, when, and for whom you can work after leaving a role. While intended to protect legitimate business interests, these clauses must be reasonable in scope, duration, and geography to be enforceable under Australian law.

At THAMS Law Group, we act for both employees seeking freedom to move to new opportunities and employers aiming to safeguard confidential information, client relationships, and competitive advantage. Our advice is clear, strategic, and commercially grounded — so you can make informed decisions before disputes escalate.

Understanding Restraint of Trade Clauses

Restraint of trade clauses are designed to protect a business’s legitimate interests, but they must be carefully drafted and reasonable to be enforceable. They often come into play when someone leaves a role or sells a business, and they can have a major impact on your future career or commercial opportunities.

Restraint of trade clauses commonly appear in:

  • Employment contracts for senior executives, sales professionals, and technical specialists where the employer seeks to limit competition.

  • Business sale agreements where the seller agrees not to compete for a specified time after settlement.

  • Partnership or shareholder agreements that restrict certain activities after an exit or dissolution.

Typical restraints include:

  • Non-compete clauses – restricting work for a competitor within a defined area or period.

  • Non-solicitation clauses – preventing contact with former clients, suppliers, or staff.

  • Confidentiality clauses – protecting trade secrets and proprietary information.

Whether a restraint is enforceable depends on whether it goes no further than necessary to protect legitimate business interests, such as client relationships, confidential information, or business goodwill. 

WHAT WE DO

Balancing Your Right to Work with Fair Protection of Business Interests

Employee Representation

For many professionals, a restraint of trade clause can feel like a career roadblock — especially if it limits where, when, and for whom you can work after leaving your role. These restrictions can affect your livelihood, reputation, and ability to use the skills you’ve built over years.

We help you take control of the situation by:

  • Reviewing and interpreting restraint clauses before you sign an employment contract or when you’re considering a new career move, so you understand exactly what you are agreeing to.

  • Assessing enforceability to determine if the restraint is reasonable in its scope, geography, and duration — or if it’s likely to be unenforceable under Australian law.

  • Negotiating modifications to narrow restrictions, reduce timeframes, or adjust geographic reach — whether before you sign or after you’ve resigned.

  • Defending against enforcement action, including urgent injunctions brought by former employers, to protect your right to work and earn an income.

  • Reducing the risk of costly litigation by providing clear, strategic advice that allows you to plan your next career step without fear of breaching your contract.

Our goal is to protect your ability to work, safeguard your professional reputation, and help you move forward with confidence.

Employer Representation

For employers, restraint of trade clauses are a critical tool to protect legitimate business interests, including client relationships, confidential information, and intellectual property. However, if they’re too broad or poorly drafted, they may be unenforceable, leaving your business exposed.

We work with business owners, HR leaders, and in-house counsel to:

  • Draft clear, enforceable restraint clauses that are reasonable, defensible, and tailored to the specific needs of your business and industry.

  • Audit existing contracts to identify weaknesses that could be exploited in a dispute, ensuring protections remain relevant and enforceable over time.

  • Pursue enforcement when a departing employee or business partner threatens your competitive position, including urgent injunction applications to prevent breaches.

  • Resolve disputes commercially, protecting relationships with clients and suppliers while minimising public conflict and reputational harm.

Handled well, restraint of trade provisions are a safeguard that protect the value of what you’ve built. Handled poorly, they can create unnecessary legal risk and weaken your competitive edge. We ensure they work in your favour.

Clear, Strategic Legal Advice for Navigating Restraint of Trade

Our advice is commercially practical, legally sound, and tailored to your unique situation. We start by understanding your objectives, whether that’s moving into a new role without breaching your contract, or safeguarding your client base and confidential information. We review the restraint’s scope, geography, and duration, then provide a plain-English assessment of its enforceability. If changes are needed, we negotiate terms, defend your position, or pursue enforcement where required.

Our approach combines deep employment law expertise with clear, commercially focused judgement. You’ll get advice you can act on immediately, strategies that stand up under pressure, and a responsive team that treats your matter as if it were our own — so you can protect your business or your career with confidence.

FAQs

  • No. In Australia, restraint clauses are only enforceable if they are reasonable and necessary to protect legitimate business interests.

  • If it’s too broad in scope, lasts too long, or covers too wide a geographic area without clear justification, it’s likely to be struck down.

  • Only if the restraint clause is enforceable and your new role poses a genuine risk to their business interests.

  • You could face legal action, including injunctions and damages claims. Early legal advice is critical.

  • Yes. Employers and employees can agree to vary the terms before or after employment ends.