A clause in an employment contract that restricts what you can do after leaving a job — such as working for a competitor or poaching clients. Enforceable only if reasonable in scope, geography, and duration.
A restraint of trade is a contractual clause that limits an employee's freedom to compete with their former employer after the employment relationship ends. Common forms include: **Non-compete clauses**: Prohibit working for a competitor for a specified period and within a defined geographic area. **Non-solicitation clauses**: Prohibit approaching former clients or customers. **Non-poaching clauses**: Prohibit recruiting former colleagues. In South Africa, restraint of trade clauses are enforceable unless they are unreasonable. Courts apply a two-stage test: (1) Is there a protectable interest (confidential information, trade connections, trade secrets)? (2) Is the restraint reasonable in scope, time, and geography relative to that interest? A restraint is not enforceable merely because an employer dislikes competition. The employer bears the onus of showing a legitimate proprietary interest worth protecting. If the restraint is overbroad — too long, too wide geographically, or not tied to a real protectable interest — a court will limit or strike it down.
A senior sales manager resigns and joins a competitor in the same city. His contract has a 12-month restraint covering the same geographic area. If the employer can show he had access to confidential client relationships, the restraint may be enforceable. If it covers an area where he never worked or clients he never contacted, a court will likely limit it.
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