Laser Junction (Pty) Ltd v Fick (6970/2017) [2017] ZAKZDHC 36; (2017) 38 ILJ 2675 (KZD) (28 September 2017)

Laser Junction (Pty) Ltd v Fick (6970/2017) [2017] ZAKZDHC 36; (2017) 38 ILJ 2675 (KZD) (28 September 2017)

The court found that the restraint of trade agreement relied upon by the applicant was not transferrable under section 197 of the Labour Relations Act, as it did not constitute a contract of employment and was manifestly unfavourable to the respondent. The evidence established that the respondent signed a new contract of employment with the applicant in 2013, which did not include a restraint clause, and that his subsequent promotion rendered any prior restraint agreement inapplicable. The applicant failed to prove the existence of protectable proprietary interests, such as confidential information or customer connections, and did not demonstrate that the respondent had violated or...

Citation
[2017] ZAKZDHC 36
Parties
Applicant: Laser Junction (Pty) Ltd; Respondent: Karl Leeson Fick
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
28 September 2017
Case Number
6970/2017
Procedural Posture
Urgent Application / Final Judgment on Application for Enforcement of Restraint of Trade
Judges
D Pillay
Legal Topics
Restraint of Trade, Section 197 Transfer, Contractual Reasonableness, Public Policy in Employment, Protectable Interests, Constitutional Rights in Employment
Labour Law Commercial and Corporate Restraint of Trade Section 197 Transfer Contractual Reasonableness Public Policy in Employment Protectable Interests Constitutional Rights in Employment

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Parties

Laser Junction (Pty) Ltd

Applicant

Karl Leeson Fick

Respondent

Procedural Posture

Urgent Application / Final Judgment on Application for Enforcement of Restraint of Trade

Legal Issues

  1. 1 Does a valid restraint of trade agreement exist between the parties?
  2. 2 Is the restraint agreement transferrable under section 197 of the Labour Relations Act?
  3. 3 Are there public policy considerations affecting the enforceability of the restraint agreement in employment?

Ratio Decidendi

The court found that the restraint of trade agreement relied upon by the applicant was not transferrable under section 197 of the Labour Relations Act, as it did not constitute a contract of employment and was manifestly unfavourable to the respondent. The evidence established that the respondent signed a new contract of employment with the applicant in 2013, which did not include a restraint clause, and that his subsequent promotion rendered any prior restraint agreement inapplicable. The applicant failed to prove the existence of protectable proprietary interests, such as confidential information or customer connections, and did not demonstrate that the respondent had violated or...