This catches many employees and entrepreneurs off guard when leaving a job or starting a competing venture. A restraint clause that's reasonable in scope, duration and geography can genuinely stop someone from working for a competitor or starting a rival business for a period of time. For businesses, it also means a well-drafted restraint clause is a real, usable tool, not just boilerplate contract language.
Source: South African Legal Information Institute (SAFLII)
Frequently Asked Questions
Are all restraint of trade clauses automatically enforceable?
No — they must be reasonable in scope, duration and area, and courts can strike down or narrow unreasonable restraints.
Who has to prove a restraint clause is unfair?
The employee or ex-employee challenging it — the clause is presumed valid unless they can show it's unreasonable.
Can a restraint of trade clause be negotiated when signing a job offer?
Yes — like any contract term, its scope, duration and geographic reach are negotiable before signing, which is far easier than challenging it later.