Introduction
In Nigeria and other jurisdictions, employees are often faced with restrictions arising from non-compete clauses in their employment contracts. These restrictions stem from an employer’s desire to safeguard its business and trade secrets, particularly in specialised fields. While Nigerian law permits employers to protect their business interests within legal limits, the courts, particularly the National Industrial Court of Nigeria (NICN), have taken a firm stance against restrictive covenants that unduly hinder an employee’s ability to secure gainful employment. The courts have consistently emphasised the need to strike a fair balance between an employer’s right to protect its business and an employee’s right to gainful employment. This article explores the evolving legal landscape surrounding non-compete agreements and proposes a pragmatic approach to reconcile the interests of both employers and employees in a free-market economy.
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