Paul Jacobson - Latest Comments in Restraint of trade agreements

Re: Restraint of trade agreements

pauljacobson — Wed, 07 Sep 2011 11:33:47 -0000

Hi Tyler

That's a pretty general question which requires specifics facts to answer properly. Generally speaking there is no restraint of trade if you haven't agreed to it but there is a body of law dealing with unlawful competition which prohibits various practices like using trade secrets and confidential information to compete unlawfully.

Its worth getting an informed opinion from a lawyer if you feel concerned about this,

Re: Restraint of trade agreements

tyler — Wed, 07 Sep 2011 09:58:11 -0000

Hey.

I'm currently working for one company, and would like to move to another which provides the same service. I have no intention of starting a business, just being an employee of a different company. Is there any part of the Restraint of Trade that would lead me into legal ramifications with my current company.

Re: Restraint of trade agreements

Info — Wed, 20 Jul 2011 11:22:33 -0000

What would be a reasonable time period for a restraint against soliciting former clients of an advertising agency - is there an industry norm?

Re: Restraint of trade agreements

pauljacobson — Tue, 19 Jul 2011 16:59:34 -0000

In theory they could but given the limited time period left it may be unlikely. An order wouldn't be very effective given the short time period left to run at the end of it all. There is a possibility the company could sue for damages suffered as a result of a breach though.

It really depends on the specific circumstances though.

Re: Restraint of trade agreements

Darrylw — Tue, 19 Jul 2011 07:34:10 -0000

can i ask a question can a company come after you if you had a 2 year restraint and i have 3 months left

can they all of a sudden come at you with 3 months left?

Re: Restraint of trade agreements

pauljacobson — Wed, 25 Nov 2009 05:24:31 -0000

That does sound unreasonable but it will really depend on your specific circumstances.

Re: Restraint of trade agreements

tanzmurray — Wed, 25 Nov 2009 04:55:18 -0000

In my contract it is said that restraint of trade is for 5 years. Following the termination of the employment with the employer for any cause I can not work any where in South Africa and all foreign countries where dealers and distributors of the employer at that time exist, Would this be considered to be unreasonable

Re: Restraint of trade agreements

pauljacobson — Mon, 17 Nov 2008 10:25:45 -0000

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.

Re: Restraint of trade agreements

pauljacobson — Mon, 17 Nov 2008 10:24:44 -0000

No, that would probably render it unreasonable and unenforceable.

Re: Restraint of trade agreements

Jewellery Talk — Mon, 17 Nov 2008 10:19:56 -0000

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

Re: Restraint of trade agreements

pauljacobson — Mon, 17 Nov 2008 09:25:45 -0000

Re: Restraint of trade agreements

pauljacobson — Mon, 17 Nov 2008 09:24:44 -0000

No, that would probably render it unreasonable and unenforceable.

Re: Restraint of trade agreements

selvan — Mon, 25 Feb 2008 09:46:18 -0000

can a restraint of trade be never ending i.e no time limit?

Re: Restraint of trade agreements

selvan — Mon, 25 Feb 2008 09:46:18 -0000

can a restraint of trade be never ending i.e no time limit?

Re: Restraint of trade agreements

yvonne — Fri, 08 Feb 2008 14:25:30 -0000

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?

Re: Restraint of trade agreements

yvonne — Fri, 08 Feb 2008 14:25:30 -0000

Re: Restraint of trade agreements

Kelly — Tue, 04 Dec 2007 03:02:19 -0000

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

Re: Restraint of trade agreements

Kelly — Tue, 04 Dec 2007 03:02:19 -0000

Is this restraint enforceable?

Thank you

Re: Restraint of trade agreements

Paul — Wed, 28 Nov 2007 05:22:32 -0000

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.

Re: Restraint of trade agreements

Paul — Wed, 28 Nov 2007 05:22:32 -0000

Hi Pieter and Nadine

Re: Restraint of trade agreements

Nadine — Tue, 27 Nov 2007 06:47:24 -0000

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?

Re: Restraint of trade agreements

Nadine — Tue, 27 Nov 2007 06:47:24 -0000

Re: Restraint of trade agreements

Pieter Van Zyl — Sun, 25 Nov 2007 09:42:30 -0000

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)

Re: Restraint of trade agreements

Pieter Van Zyl — Sun, 25 Nov 2007 09:42:30 -0000

Re: Restraint of trade agreements

paul — Wed, 10 Oct 2007 12:41:59 -0000

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