Post by Arise News (@arisenews)

Court of Appeal has ruled that employers cannot enforce unreasonable post-employment restrictive clauses that prevent former employees from securing new jobs. In a unanimous judgment, the court dismissed MTN Nigeria’s appeal and upheld a National Industrial Court decision awarding ₦5.1 million in compensation to former Procurement Manager Theodore Ikpa, who argued that a four-year restraint clause made it impossible for him to find work. The court held that the covenant was excessive, accepted Ikpa’s unchallenged evidence of hardship, and reaffirmed that restrictive clauses must be reasonable and cannot unfairly deny individuals the right to earn a living. MTN was also ordered to pay an additional ₦500,000 in appeal costs.

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