Restraint of Trade Clause in Labour Contract

Abstract

The Restraint of Trade Clause shall be taken in labour agreement to preserve the Client's competition position and restraint the employee from disclosing of the Secrets of Trade and creating some subsequent legal relationships. Since, this clause causes a lot of limitations, shall be subject to several conditions including to: (i) employer's legitimate interests, (ii) determining of the time and place of performance of the clause and (iii) not discrepancy with public policy and social benefits. In the Iranian law, since, Labour Act do not comprise the Restraint of trade clause expressly, we will examine the clause under general rules governing on clauses and obligations. This paper wish to examine the clause and conditions thereof generally then in Iranian Law.

Keywords

• the restraint of trade clause
• the trade secrets
• reasonability of clause
• objective and subjective knowledge
• freedom of job