Post by Judith Griessel

RESTRAINTS OF TRADE A restraint of trade should be aimed at protecting a legitimate business interest, such as confidential information, client relationships, trade connections, pricing models or other commercially sensitive information. A restraint can however affect future career options for employees, so a proper balancing of the various interests is always important. A restraint should not be so wide to prevent an employee from earning a living, nor used as a tool to punish them for leaving. But employees should also not assume that these obligations fall away because the employment relationship has ended, even if they were dismissed from the previous employer. In South Africa, if a dispute arises, the courts will always enquire whether the restraint is reasonable and if the employer has a legitimate protectable interest. So restraint clauses should be carefully drafted to be role-specific, and capable of being justified (geographical reach and duration) - not a blanket template clause repeated in every employment contract. While an employee is entitled to use their own experience and professional ability to earn a living, they may be restricted from using confidential, proprietary information or client relationships gained through previous employment in a way that prejudices the former employer. The case below is a good example of how the various interests are balanced. #legal #restraintsoftrade #business #leadership