The main intent of this provision is to protect the employer`s own interests – including trade secrets, confidential information and, of course, customers and customers – from trespassing into the hands of the competitor. In determining whether a restriction is appropriate and therefore applicable, a court will take into account, among other things, the following factors: it is more likely that the vast majority of employment contracts today contain a limitation of the trade clause. A limitation of the trade clause, which is typically contained in an employment contract, provides that, after the termination of the employment relationship, the worker is discouraged from prolonging similar work or from accepting a future job in competition with his current employer, usually for a specified period after the termination of the employment relationship. There is no legislation that regulates the limitation of commercial rights and therefore constitutes a strict contractual agreement between the employer and the worker. The geographic area for which the restriction applies; In a recent end of the case, there was a factual dispute over the existence of trade restriction and a possible hi-jacking of the employer by the workers. The employee acknowledged the creation of a new company in direct competition with the employer. The employer did not obstruct the restriction of the trade agreement and claimed that the workers had destroyed the restriction of the trade agreement. The employer also failed to restrict trade agreements by other agents who would have weighed in on its favour. The material dispute could not be resolved on paper. Every citizen has the right to freely choose a profession, profession or profession.
However, the restriction of trade agreements is perfectly legal and very applicable to South African workers. It`s to protect a company from the theft of its basic services. Moreover, these agreements are not valid and are not applicable only if they are deemed inappropriate. It is the responsibility of a staff member to prove that an agreement is inappropriate. However, for the agreement to be valid, signed copies must be available. A restriction of the trade agreement is enforceable, unless it proves unreasonable – and the obligation to show that it is unreasonable rests with the worker. Chapter 11 – Time to See Whether a Close, but No Cigar Withholding – The Importance of Limiting Trade Clauses A trade restriction is a provision in an employment contract that requires that, in the event of termination of contract, for any reason, the worker may be limited within the geographical limits and the work he can perform.