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Restraint of trade
An employer may insert a clause into your contract of employment that prevents or sets limits on you working for a competitor. Courts or tribunals would normally rule against a blanket ban on working for a competitor because it would be a 'restraint of trade' – a general legal principle used to stop attempts to stifle competition. However, specific restrictions – known as restrictive covenants – may be allowed if they are reasonably justified as protecting the employer's legitimate business interests.