What is Restraint Of Trade?
Restraints of trade is a common law doctrine relating to the enforceability of contractual restrictions on freedom to conduct business.
How Long Is A Restrain Of Trade Valid For In South Africa
Restraint for a period of between 6- 24 months may be regarded as reasonable in terms of duration, the courts may reject anything longer.
Is restraint of trade valid in South Africa?
The court held that a restraint of trade agreement is enforceable unless it is shown to be unreasonable – and the onus of showing that it is unreasonable rests upon the person alleging it.
How does a restraint of trade work in South Africa?
Such a contract provides that after the termination of employment, the employee is restricted in the work he/she can perform in that he/she will be restrained from performing similar work in competition with his/her former employer, for a prescribed period of time and in a specific geographical area.
What are the limits of restraint of trade?
A restraint of trade typically limits employees from making use of ‘company resources for personal gain. An employee’s unique skills are considered to be ‘company resources’ and it is this that you are not entitled to utilize for the benefit of anyone else other than your current employer.