# Restricted Period > a period of 6 months immediately following the Termination Date; **Term:** Restricted Period **Last updated:** 2026-07-29 ## Definition ## What Restricted Period Means in a Contract The Restricted Period is a defined term used to fix the length of time that post-termination obligations remain enforceable against a party after an agreement ends. In the example used here, it is set at six months immediately following the Termination Date, meaning the clock starts running the day the contract or employment relationship formally concludes and continues for that fixed duration. This term is almost always paired with restrictive covenants such as non-competition, non-solicitation of clients or staff, and sometimes non-dealing provisions. Rather than repeating the duration every time a restriction is described, drafters define Restricted Period once and then reference it throughout the document, which keeps the drafting consistent and reduces the risk of mismatched timeframes appearing in different clauses. ## How Restricted Period Is Defined or Measured Measurement of the Restricted Period depends entirely on the trigger event chosen by the parties, which is usually the Termination Date rather than the signing date or an earlier notice date. Precision matters here because a poorly defined trigger can create ambiguity about when the restrictions actually begin and end. Common approaches include: - A fixed number of months or years running from the Termination Date, as in the six-month example. - A period that starts from the last date of active service or the last day worked, which can differ from the formal Termination Date if there is a notice period involved. - A period that may be extended in specific circumstances, such as where a breach is discovered later or where garden leave overlaps with the restriction. Because the calculation can hinge on definitions found elsewhere in the agreement, such as Termination Date or Effective Date, cross-referencing those definitions carefully is essential to avoid unintended gaps or overlaps. ## Where Restricted Period Appears in Agreements Restricted Period clauses appear frequently in employment contracts, shareholder agreements, business sale agreements, and consultancy arrangements where one party gains sensitive knowledge, client relationships, or competitive insight during the relationship. It is a standard feature alongside broader exit mechanics documented in a