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hello Iamp;#39;m Nadia McLeod from RPM relegal kits and we help you cut your legal costs with our online template kits a Restraint of trade clause prevents employees from certain activities after they have left the company these activities could include setting up a competing company passing on Commercial Secrets or working in the same role for the competition a Restraint of trade clause must be specific and last for a reasonable time frame employees take important skills and knowledge with them when they leave a company if the competition obtains this knowledge it could damage your company for this reason many employment contracts include a Restraint of trade clause that protects Trade Secrets client relationships and confidential information there are four types of restraint Clauses non-compete clauses ensure that employees cannot form competing businesses within a certain time frame or place non-recruitment Clauses forbid employees from trying to convince other employees to join th