A restraint of trade limits a person from competing, soliciting clients or poaching staff after they leave a business. In South Africa, restraints are enforceable unless they are unreasonable, but only to the extent needed to protect a legitimate business interest.
Courts ask whether there is a protectable interest, whether it is threatened by the person’s conduct, and whether that interest outweighs the person’s interest in being economically active. The scope, duration and geographic area of the restraint must be reasonable.
A court may enforce a restraint only in part, for example for a shorter period or a narrower area, rather than declaring it unenforceable altogether.
Restraint disputes move quickly. Acting promptly is important, as delay can undermine an application for urgent relief.
We draft enforceable restraints, act quickly to enforce them, and advise employees on their rights when a restraint is unreasonable.
Read more: Restraint of trade: when can an employer stop an employee? · Urgent interdicts
This page is general information and not legal advice.
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