04/06/2026
Many employees assume that if they are dismissed, their restraint of trade falls away.
That is not necessarily correct.
A restraint of trade can still apply after dismissal, depending on the wording of the agreement and whether the restraint is reasonable and enforceable.
This is an important point for both employers and employees.
For employers, dismissal does not automatically mean that the business has lost the right to protect confidential information, client relationships or other legitimate business interests.
For employees, dismissal does not automatically mean that post-employment obligations no longer matter.
The end of employment does not always mean the end of contractual obligations.
Before assuming that a restraint cannot be enforced, both parties should carefully consider:
Whether the agreement is clearly drafted.
What interest the employer is trying to protect.
Whether the restraint is reasonable in scope, duration and area.
Whether enforcement would be fair in the circumstances.
A restraint of trade should never be ignored simply because the employment relationship ended badly.