Restricted cover includes free time (7)
I believe the answer is:
limited
'restricted' is the definition.
('limit' can be a synonym of 'restrict')
'cover includes free time' is the wordplay.
'cover' becomes 'lid' (lid is a kind of cover**).
'includes' means one lot of letters goes inside another.
'free' is an anagram indicator.
'time' is an anagram of 'mite'.
'lid' going around 'mite' is 'LIMITED'.
(Other definitions for limited that I've seen before include "Restricted, finite" , "short of talent" , "Bounded, circumscribed" , "Checked" , "Circumscribed, restricted" .)