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Thread: RESTRAINT OF TRADE AGREEMENTS

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    RESTRAINT OF TRADE AGREEMENTS

    Good Day,

    I just have a general question relating to this, could some legal expert please advise on what the real case is.

    Do the courts in South Africa like dealing with this issue? The general talk that I have heard is that the courts do not it due to the fact that cannot stop a person from bettering themselves is this correct?

    This is a general employee who did not start up a new business or anything like that.

    Would appreciate some legal opinion.

    Thanks

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    If the employee has signed a restraint clause, the restraint stands unless the employee can show that it against public police, unfair, unreasonable. The court will determine and may "amend" the terms of the restraint, uphold it or strike it down.

    If an employee leaves, but has no restraint clause, then the company has some protection in terms of common law, fair business practice and such. Examples are where the employee is approaching clients directly. There is also trade secrets which give the business protection.

    The court has to balance the ex employee's right to economic freedom against the rights of the business owner.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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