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Restraint of Trade in Employment Contracts
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Lolest!
#1 Posted : Monday, March 10, 2014 1:24:50 PM
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Joined: 3/18/2011
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Location: Kianjokoma
Is this legallly enforceable where it doesn't have time limit and area?
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Lolest!
#2 Posted : Monday, March 10, 2014 1:38:55 PM
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Joined: 3/18/2011
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Hi Admin, I'd posted this in the club because I knew the likelihood of getting an answer there is higher!
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muganda
#3 Posted : Monday, March 10, 2014 2:25:54 PM
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Joined: 9/15/2006
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Revised edition 2012 holds it is voidable if court is satisfied provision is not reasonable as relates to either:
- nature of profession, trade, business or occupation
- period of time and area
- public interest

In the case of minors, very tricky if it's not in their benefit.


See General Principles and Commercial Law of Kenya
By Ashiq Hussain
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Lolest!
#4 Posted : Monday, March 10, 2014 3:14:16 PM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
muganda wrote:
Revised edition 2012 holds it is voidable if court is satisfied provision is not reasonable as relates to either:
- nature of profession, trade, business or occupation
- period of time and area
- public interest

In the case of minors, very tricky if it's not in their benefit.


See General Principles and Commercial Law of Kenya
By Ashiq Hussain

Thanks, had read the jargon in the Act and thought it implied what you've said here. The Employment Act is silent on this

Was wondering whether there's also judicial precedent on this. @maka, @waP, and other wazua lawyers, semeni kitu!
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muganda
#5 Posted : Monday, March 10, 2014 3:35:16 PM
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Joined: 9/15/2006
Posts: 3,905
Good @Lolest!, let's hear what the lawyers think.

However from my earlier post 1st link:
- restraint of trade is void where area and period time not reasonable
- restraint of trade will not apply where employer terminates service in contravention of employment act


I could not find CapitalFM vs Caroline Mutoko case, but list from my earlier 2nd link:
Examples of Reasonable Restraint
Plowmn, G.W & SON v ASH. 1964
Trevor Andre v Bashford 1966
Fitch v Dewes 1921

Examples of Unreasonable Restraint
Gledhow Autports v Delaney 1965
Mason v Provident Clothing and Supply Co. 1913
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