The general position is that post-termination restrictive covenants are void on public policy grounds as being in restraint of trade, unless they are being used by the employer to protect a legitimate business interest. To name a few, such interests include employer’s connections with their clients, suppliers and customers (including prospective ones), confidential information and trade secrets.
This is not to say that restrictive covenants will not be upheld by the courts. Whether restrictive covenants are enforceable will always depend upon the factual circumstances of the case. The following principles are usually taken into account:
Is the employer trying, by way of the restrictive covenants, to deny an ex-employee the right to make a living in their chosen industry or profession?
Are the restrictive covenants more restrictive on the ex-employee than is reasonably necessary in the particular circumstances to protect the employer’s business?
Does the employer have a legitimate business interest which requires protection?
Are the restrictive covenants reasonable in the particular circumstances to protect the employer’s business?