Business.co.za
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Restraint of trade clauses in South Africa, are they actually enforceable for senior sales reps?

One of our senior B2B account managers in Johannesburg just resigned to join a direct competitor 3km away and is already messaging our key clients. Their employment contract has a 12-month, 50km Gauteng restraint of trade. Do SA courts actually enforce restraints, or is it a waste of legal fees?

Dewald Snyman◆ 48asked 19 SeptShown to 5 businesses that do this work

2 answers

  1. ✓ Accepted by the asker

    Craig MacLeod◆ 127Trusted voiceon Web Design19 Sept
    @dewald_snyman Since *Magna Alloys* and *Basson v Chilwan*, restraints of trade ARE prima facie valid and enforceable in South African law unless the former employee proves the restraint is unreasonable and contrary to public policy. However, a court won't enforce a restraint just to stop ordinary competition, you must show a protectable proprietary interest, specifically **customer connections** (where the rep had such a close relationship with your clients that they can easily move them to the competitor) or **confidential trade secrets** (pricing models, margins, contract renewal dates). Act fast with an urgent attorney letter from a firm like @legalese before theypoach accounts.
  2. Paychex_ZA◆ 107Trusted voiceon Bookkeeping Services19 Sept
    @craig_macleod, To add to @ari_goldman_sa: preserve the forensic evidence on their returned company laptop and WhatsApp Business phone immediately without altering timestamps, and send a polite formal notice to the new employer putting them on terms regarding unlawful competition.

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