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Paul Jacobson

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Restraint of trade agreements

Started by pauljacobson · 3 months ago

I have seen debates about the enforceability of restraints of trade provisions a number of times in business fora.  More often than not the people giving advise (generally not lawyers) believe that an employer is not permitted to prevent an employee from earning a living, particularly ... Continue reading »

12 comments

  • I realy have a friend that was fired form his job but he has a restraint of trade agreament. does the agreament still stand up in court if he starts his own competing company.
  • Hi Maggie

    That would really depend on the terms of his agreement. Often these agreements survive termination of employment and would pose a challenge to an ex-employee who starts a competing business.
  • I have a trade restraint that is for two years and covers the whole of South Africa and all states around us in Africa. Would that be considered to be unreasonable
  • Hi

    I am currently employed as a sales consultant for a higher end jewellery company with branches in all the major shopping centres in south africa. I had to sign a restraint of trade agreement when I started as I would not have gotten the job otherwise. It states that I am not allowed to work in this field within a 50km radius of any of their shops - which means I need to leave the jewellery trade if I want to earn a living. Have you in your experience come across this for (just) a sales consultant, and do you think they might be able to enforce the agreement? I am not involved in activities within the company that I feel might be jeopardised should I work from someone else, as all I do is sell what is in the store I work from. I am currently very unhappy within my work environment and would like to leave if possible. I am also not looking at opening my own company, but am considering applying at another company for a sales position. Thank you for your time and I hope you can assist. Regards Pieter Ps, I am afraid that someone might come across my correspondence and have therfore used a psuedonym, if you can and would like to respond to my query, please do so at the e-mail provided and I can provide you with my real details, hope you can understand - I just don't want to risk anything. (sorry for this)
  • I am currently employed as a sales consultant for a motor dealer. I want to resign & go into finance but my employer is holding me to restraint of trade, is this legal. I am entering a different field?
  • Hi Pieter and Nadine

    Thanks for commenting. Whether your restraints are going to be enforceable will depend on the specifics of your contracts. The terms of those contracts will determine whether the restraints are enforceable.
  • Hi,
    I am currently seeking another job, however, the job which I would like to apply for is a tour operator too, however, there are a few differences. I will also be in a different position in the potential company, however, I have a restraint of trade request in my agreement contract.

    Is this restraint enforceable?

    Thank you
  • hi. i'm in medical field. i've resigned with proper 30 days notice and am being forced to sign a letter of restraint. i will however, be going to a 'competition' company, but NOT in the same division of medical instruments - completely different. they are threatening to enforce their legal advisors on me... do i really have to sign?
  • can a restraint of trade be never ending i.e no time limit?
  • No, that would probably render it unreasonable and unenforceable.
  • enforcement of restraint of trade provisions. Some companies will enforce a restraint, regardless of the possible threat by the employee because it is more important to deter similar conduct by other employees
  • Yes, that is true and sometimes advisable for companies which face an exodus of staff to the competition. It can be expensive but if you have a company determined to squash unlawful competition this way, it can be an effective strategy.

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