Restraint of trade provisions in employment agreements place serious restrictions on the right of workers to freedom of movement within the labour market. While courts have attempted to safeguard this right, employers often simply insert unjustifiable restraints of trade in employment agreements.
Due to limited resources, most workers accept these restraints without challenging them in the court or the Employment Relations Authority.
The NZCTU supports the Employment Relations (Restraint of Trade) Amendment Bill in that it places clear restrictions on the ability of employers to impose restraint of trade provisions in employment agreements and balances the rights of workers against any legitimate interest an employer might need to protect through a justifiable restraint of trade.