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Thread: Restraint of trade clause in employment agreement in South Africa - enforceable oversea?

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    Restraint of trade clause in employment agreement in South Africa - enforceable oversea?

    Hi

    Does anyone know if restraint of trade clauses signed in employment agreements in South Africa are enforceable overseas?

    I have an employee that has resigned and joined a competitor in a foreign country.

    What action if any can be taken?

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    Diamond Member HR Solutions's Avatar
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    As far as I know restraints of trades are difficult to enforce in SA let alone overseas. You cannot stop a person plying their trade - but u can restrain them taking your clients and staff.
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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Kenny123 View Post
    Does anyone know if restraint of trade clauses signed in employment agreements in South Africa are enforceable overseas?
    This might be dependant on which court has jurisdiction and hears the matter.

    To get a restraint enforced in SA requires that it is "reasonable". This is influenced by the post the employee held, and the scope and area of the restraint.
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    I think that any restraint clause must contain an area in which the restraint applies, and for a limited time period.
    If the restraint refers to the RSA only, then it can not be applied world wide.

    The other point would also be the position held by the employee.
    If the position was a strategic position, then the employment contract should address what the restraint is, and one should read the original terms of employment and specifically the restraint clause.

    Applying a general meaning to restraint on a public forum with out reading the exact relevant clauses in the employment contract may be folly.
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