Deducting the suspension period from the duration of the Restraint of Trade Clause: A note on Future Packaging and Machinery (Pty) Ltd v Polti

Abstract

The Labour Court examined enforcing a restraint of trade clause against a senior employee fired after over three decades in Future Packaging and Machinery (Pty) Ltd v Polti. This dispute hinged on whether the court may enforce a national restraint clause for 36 months under section 22 of the Constitution of South Africa, 1996, which protects the right to freely select a trade. Proceedings revealed that the employee worked for a competitor, violating his contract.Based on Magna Alloys, Basson, and Reddy, the court reiterated that limitations are permissible but unenforceable if against public policy and unjust. The court found that the employer had a protectable interest, but it deducted the employee's suspension from the restraint. The court also ruled the restraint appropriate without explanation. The judgement adds to trade jurisprudence's constraint. The court underlines that employees, regardless of status, should honour their contractual commitments but also that the breadth and length of the restraint must be balanced. The judgement balances contractual commitments with constitutional ideals.

Keywords: {'name': 'Restraint of trade clause'}, {'name': 'confidentiality'}, {'name': 'enforcement'}, {'name': 'reasonableness'}, {'name': 'contractual obligations'}

Authors & affiliations

Carlos Joel Tchawouo Mbiada
University of Venda

Deposited references

Supplied references, not a list of publications citing this article.

No reference list supplied.