South Africa Case Law

Esmarie Dreyer Physiotherapy Incorporated v Shuab Omar t/a Omar Physiotherapy (2024/126905)

Esmarie Dreyer Physiotherapy Incorporated v Shuab Omar t/a Omar Physiotherapy (2024/126905) [2024] ZALCCT 64 (12 December 2024)

Court

Labour Court Cape Town

Case number

2024/126905

Judge

R Lagrange

The court found that the restraint of trade clause in the respondent's employment contract was intended to prevent the respondent from competing with the applicant by rendering physiotherapy services at the Rondebosch Medical Centre premises, regardless of whether he did so as an employee of another practice or in his own name. The clause's purpose was to protect the applicant's relationships with referring doctors and existing clients from being exploited by former employees. The court rejected the respondent's narrow interpretation that the restraint only applied to employment by third part…

Source excerpt

• Restraint Of Trade
• Employment Contracts
• Enforceability Of Contractual Terms

Workforce Staffing (Pty) Ltd v Sadan and Others (J488/23)

Workforce Staffing (Pty) Ltd v Sadan and Others (J488/23) [2023] ZALCJHB 107 (19 April 2023)

Court

Labour Court Johannesburg

Case number

J488/23

Judge

Nkutha-Nkontwana

The Labour Court enforced restraint and confidentiality undertakings against former employees who joined a competitor and used the applicant’s confidential business information.

• Restraint Of Trade
• Confidential Information
• Customer Connections
• Enforceability Of Contractual Terms
• Urgent Interdict
• Balance Of Convenience

Globeflight Worldwide Express SA (Pty) Ltd v Grace and Another (J1178/21)

Globeflight Worldwide Express SA (Pty) Ltd v Grace and Another (J1178/21) [2021] ZALCJHB 437 (29 October 2021)

Court

Labour Court Johannesburg

Case number

J1178/21

Judge

Prinsloo

The court found that the applicant has proprietary interests in both confidential information and customer connections, which are threatened by Ms Grace's employment with a direct competitor. Ms Grace's undertakings not to disclose confidential information or solicit clients do not negate the risk posed by her new employment, nor do they defeat the purpose of the restraint. The merger with DSV does not render the restraint academic, as section 197 of the LRA transfers all rights and obligations, including restraints, to the new employer. The restraint is reasonable in duration and geographic…

Source excerpt

• Restraint Of Trade
• Confidential Information
• Section 197 Transfer
• Enforceability Of Contractual Terms
• Customer Connections
• Public Policy

Bragan Chemicals (Pty) Ltd v Meyer and Another (J 802/21)

Bragan Chemicals (Pty) Ltd v Meyer and Another (J 802/21) [2021] ZALCJHB 219 (9 August 2021)

Court

Labour Court Johannesburg

Case number

J 802/21

Judge

Tlhotlhalemaje

The Labour Court enforced a restraint of trade and confidentiality undertaking against a purchasing manager who joined a competitor and had access to confidential business information.

• Restraint Of Trade
• Confidential Information
• Enforceability Of Contractual Terms
• Employee Misconduct
• Interdict
• Costs Order

Betterbond (Pty) Ltd and Another v Smit and Another (J2898/18)

Betterbond (Pty) Ltd and Another v Smit and Another (J2898/18) [2018] ZALCJHB 318 (5 October 2018)

Court

Labour Court Johannesburg

Case number

J2898/18

Judge

Nkutha-Nkontwana

The Labour Court enforced Betterbond’s restraint and confidentiality undertakings against a departing employee, finding no novation and holding the restraint reasonable.

• Restraint Of Trade
• Confidential Information
• Enforceability Of Contractual Terms
• Protectable Interest
• Novation
• Final Interdict

Twincare International (Pty) Ltd v Nel (J2249/17)

Twincare International (Pty) Ltd v Nel (J2249/17) [2018] ZALCJHB 245; (2018) 39 ILJ 2760 (LC) (20 July 2018)

Court

Labour Court Johannesburg

Case number

J2249/17

Judge

P Nkutha-Nkontwana

The Labour Court held that a deregistered company lacked locus standi and could not be cured by amendment; the restraint agreement was also found unenforceable.

• Locus Standi
• Restraint Of Trade
• Amendment Of Pleadings
• Section 197 Transfer
• Enforceability Of Contractual Terms
• Locus-standi

Potgieter and Another v Meyer (77243.2015)

Potgieter and Another v Meyer (77243.2015) [2016] ZAGPPHC 533 (4 March 2016)

Court

North Gauteng High Court, Pretoria

Case number

77243/2015

Judge

Makgoka

High Court upheld a restraint of trade in a salon sale agreement and interdicted the respondent from competing or soliciting staff.

• Restraint Of Trade
• Sale Of Shares Agreement
• Rectification Of Contract
• Enforceability Of Contractual Terms
• Solicitation Of Employees
• Restraint-of-trade

Reeves and Another v Marfield Insurance Brokers (Pty) Ltd and Another (12/95)

Reeves and Another v Marfield Insurance Brokers (Pty) Ltd and Another (12/95) [1996] ZASCA 39; 1996 (3) SA 766 (SCA); (28 March 1996)

Court

Supreme Court of Appeal

Case number

12/95

Judges

Scott, Corbett, Hefer, Nienaber, Schutz

The SCA held that a restraint of trade could be enforced after wrongful dismissal where the clause applied on cessation of employment for any reason.

• Restraint Of Trade
• Wrongful Dismissal
• Enforceability Of Contractual Terms
• Public Policy
• Area Of Restraint
• Restraint-of-trade