Restraint of trade

The principle that an individual should be free to follow his trade and use his skills without undue interference. The principle renders a contractual term purporting to restrict an individual's freedom to work for others or carry out his trade or business (a restrictive covenant) void unless it is designed to protect legitimate business interests and no wider than reasonably necessary.

For more information, see Practice notes, Restrictive covenants in employment contracts and Atypical restrictive covenants.