Contractual Obligations To Keep In Mind – Restraints Of Trade
As a job seeker, it’s important to pay close attention to the contractual obligations that come with any job offer. One of the most important obligations to keep in mind is the restraint of trade clause, which can have a significant impact on your career prospects.
A restraint of trade clause is a contractual provision that restricts a person’s ability to engage in certain activities after leaving their current job. These restrictions may include limitations on working for a competitor, soliciting customers or clients, or even starting a competing business.
From an employment contract perspective, a restraint of trade clause is intended to protect an employer’s legitimate business interests, such as confidential information or trade secrets. However, these clauses can also restrict a person’s ability to earn a living and pursue their chosen career when moving on from their current position at the company.
There have been several cases in South Africa where Constitutional rights have been used to challenge restraints of trade clauses in various employment contracts. In the case of Basson v Chilwan and Others, the Constitutional Court ruled that a restraint of trade clause that prevented an employee from practicing their profession for two years after leaving their employer was unenforceable. The court found that the clause violated the employee’s right to freedom of trade, occupation, and profession.
In another case, Richfield Graduate Institute of Technology (Pty) Ltd v Information and Communication Workers Union and Others, the Labour Court found that a restraint of trade clause that prevented employees from working for competitors for six months after leaving their employer was unreasonable and unenforceable. The court held that the clause was too broad and did not consider the specific skills and knowledge of the employees.
As a job seeker, it’s important to carefully review any restraint of trade clauses in your employment contract and consider seeking legal advice if you have any concerns. By understanding your contractual obligations, you can ensure that you’re able to pursue your career goals without facing unnecessary obstacles or restrictions.
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Contractual Obligations To Keep In Mind – Restraints Of Trade
