# Restricted Services > Company and associated Companies Services or services of a similar kind; **Term:** Restricted Services **Last updated:** 2026-07-29 ## Definition ## What Restricted Services Means in a Contract Restricted Services is a defined term that identifies the particular activities, offerings, or lines of business a party is prohibited from carrying out during or after a contractual relationship. It typically appears in employment contracts, shareholder agreements, and business sale agreements where one party wants to stop another from competing in a specific commercial space. The definition given here, referring to the Company and associated Companies Services or services of a similar kind, shows how the term is anchored to the actual business the protected party operates, rather than to a generic industry description. The purpose of naming Restricted Services explicitly is to give the restraint a clear, provable boundary. Courts and commercial parties alike need to know precisely what conduct is off limits, since vague or overly broad restraints risk being unenforceable under the law governing the contract. By defining Restricted Services with reference to the actual services provided by the company and its group, drafters try to keep the restriction proportionate to a legitimate business interest. ## How Restricted Services Is Defined or Measured Restricted Services is usually measured by cross-referencing the actual operations of the business at a fixed point in time, often the date of an employee's departure, the date of completion of a sale, or the date the agreement is signed. This anchoring prevents the definition from expanding indefinitely to cover future ventures the company might pursue years later, which would make the restraint harder to justify. Many definitions, like the one at hand, also capture services of a similar kind, extending protection beyond an exact match. This catches attempts to sidestep the restriction through minor rebranding or slight variations in service delivery. However, the broader this language becomes, the more scrutiny it attracts, because a restraint that is too wide in scope may be struck down or narrowed by a court or tribunal. - Reference to services actually supplied by the Company and its group at a specified date. - Inclusion of services of a similar kind to prevent easy circumvention. - Interaction with geographic scope and duration, since all three elements together determine enforceability. ## Where Restricted Services Appears in Agreements The term commonly surfaces in restrictive covenant clauses within employment contracts, director service agreements, consultancy agreements, shareholder agreements, and business or share purchase agreements. It is frequently paired with defined terms such as Restricted Period and Restricted Territory, together forming the full non-compete framework. Restricted Services also appears in agreements involving outsourcing or managed service arrangements, where a customer or supplier wants to prevent the other from poaching business into a competing offering. For example, a