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South Africa decisions
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Backsports (Pty) Ltd v Motlhanke and Another (2025/009346) [2025] ZALCJHB 68 (18 February 2025)
The Labour Court dismissed an application to enforce a restraint of trade after finding no proven protectable interests, no sufficient breach, and no basis for further interdicts.
Demari Tools and Supplies (Pty)Ltd v Abiel and Another (J 1600/23) [2024] ZALCJHB 126 (23 February 2024)
The Labour Court dismissed an urgent application to enforce a restraint of trade, finding no protectable interest in confidential information or customer connections.
B & B Plumbing and Building Supplies (Pty) Ltd v Govender and Others (D12620/2023) [2023] ZAKZDHC 91 (30 November 2023)
The court found that the restraint of trade clauses in the employment contracts were valid and binding on the first to third respondents. The respondents were aware of the restraints and had previously signed similar covenants. The applicant established protectable interests in its customer connections and confidential information, though not in its supplier relationships. The respondents' conduct in joining a competitor and offering undertakings only in the answering affidavit indicated a lack of good faith. The court held that tailored enforcement of the restraint, prohibiting the responden…
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TWK Agri (Pty) Ltd v Botha and Others (J125/2023) [2023] ZALCJHB 42 (7 March 2023)
Labour Court urgent application enforcing a 12-month restraint and confidentiality clauses against former employees who solicited clients and moved business to a competitor.
Weir Minerals Africa (Pty) Ltd v Potgieter and Others (J2832/16) [2017] ZALCJHB 199 (26 May 2017)
The court found that Potgieter and Gomes had signed valid restraint undertakings in favour of their employer, which, through a change of name, is now Weir Minerals Africa (Pty) Ltd. The operative provisions of the restraint always included the applicant, and there was no need for assignment or transfer after the change in shareholding. Both respondents had access to confidential information and customer connections developed by Weir over many years, and their employment with Goodwin, a direct competitor, placed Goodwin in a position to exploit these proprietary interests. The restraints were…
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Hi-Tech Recruitment (Pty) Limited and Others v Nel and Another (J909/2016) [2016] ZALCJHB 250 (18 July 2016)
The court found that the First Respondent voluntarily signed both the offer and the main employment contract, which clearly referenced restraint of trade and confidentiality undertakings. There was no credible evidence of duress or undue influence; the First Respondent had the opportunity to consider the contract and was not compelled to sign under threat of unemployment. The Applicants demonstrated protectable proprietary interests in customer connections and confidential information, both central to their business and at risk from the First Respondent's employment with a direct competitor.…
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Medtronic (Africa) (Pty) Limited v Kleynhans and Another (J2013/15) [2015] ZALCJHB 430; (2016) 37 ILJ 1154 (LC) (15 December 2015)
The court found that Medtronic possesses a legitimate and protectable interest in its customer connections, which arise from the extensive contact and relationships developed by Kleynhans with surgeons in the relevant regions. The evidence established that the products sold by Medtronic and Amayeza are interchangeable and similarly priced, making the relationship between sales representative and surgeon a significant factor in product selection. Kleynhans failed to demonstrate that enforcement of the restraint would be disproportionate or that he lacked the ability to influence surgeons to sw…
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Eagleburgmann Seals SA (Pty) Ltd v Naidoo (11211/14) [2015] ZAKZDHC 53 (22 June 2015)
The High Court enforced a restraint of trade against a former sales representative, finding the agreement valid and necessary to protect confidential information and customer connections.
Business Connexion (Pty) Limited v Petrus and Another; In re: Business Connexion (Pty) Limited v Strydom and Another (J981/2014; J1022/2014) [2014] ZALCJHB 209 (11 June 2014)
The Labour Court dismissed BCX’s urgent applications to enforce restraint-of-trade clauses against former employees and their new employer, finding BCX had waived enforcement in the Sasol context.
Heaven Group (Pty) Ltd v Wolman and Another (3852/2013) [2013] ZAGPJHC 154 (3 May 2013)
The High Court granted an interim interdict enforcing a restraint of trade against a former employee who was found prima facie to be competing with the applicant.
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