Do you know what the restraint of trade clause means and how it can affect you?

Ever wondered what the 'restraint of trade' clause in your contract means?

What are the terms of that clause and if you resign, how long should you stay out of work because of this clause?

Moni Attorneys Incorporated's lawyer Natasha Moni explains the legal terms of this clause in the World of Work feature and answers questions from callers dealing with this clause.

The restraint of trade is signed at the beginning of the employment relationship.

Natasha Moni, Attorney Moni Attorneys Incorporated

The employer basically says if you go and work for the competitor or you decide to go and compete with me after our working relationship is terminated, then you need to stick to my rules of protecting my interests.

Natasha Moni, Attorney Moni Attorneys Incorporated

It is fair if you have agreed to it and it is fair if the area in which you are restrained and the time frame that you are restrained to is reasonable under the circumstances.

Natasha Moni, Attorney Moni Attorneys Incorporated

_Restraint of trade means:1. Legal contract between a buyer and a seller of a business, or between an employer and employee, that prevents the seller or employee from engaging in a similar business within a specified geographical area and within a specified period. It intends to protect trade secrets or proprietary information but is enforceable only if it is reasonable with reference to the party against whom it is made, and is not contrary to the public policy.2. Illegal contract that in any way colludes to damage another's opportunity or ability to carry out a business.Definitions sourced from Business Dictionary _

Callers shared their experiences, take a listen...


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Is everything you say prefaced with your social labels? Listeners talk identity

Is everything you say prefaced with your social labels? Listeners talk identity

Can you express a view without announcing yourself as a member of a certain social group first? Eusebius opened a discussion.

[LISTEN] Sanitary towels added to proposed list of VAT zero-rated products

[LISTEN] Sanitary towels added to proposed list of VAT zero-rated products

An economist at Argon Asset Management Thabi Leoka explains how they came up with the proposed list for zero-rated products.

Ramaphosa has three months to hire new NPA boss, Abrahams' position invalid

Ramaphosa has three months to hire new NPA boss, Abrahams' position invalid

The ConCourt has confirmed that the appointment of Advocate Shaun Abrahams as prosecutions boss is constitutionally invalid.

Happiness and fulfillment aren't the same. A clinical psychologist enlightens

Happiness and fulfillment aren't the same. A clinical psychologist enlightens

Happiness is often linked to hedonism and can be a fleeting emotional state, says clinical psychologist Khosi Jiyane.

Debating Mbeki's economic legacy

Debating Mbeki's economic legacy

Pundits discuss how South Africa’s economic trajectory performed under former president Thabo Mbeki's administration.

 Multi-racial relationships in South Africa still draw attention say couples

Multi-racial relationships in South Africa still draw attention say couples

Couples in interracial relationships sit down to discuss the difficulties of being in such relationships.

Popular articles
The UAE is pumping billions into the Horn of Africa

The UAE is pumping billions into the Horn of Africa

The Money Show's Bruce Whitfield interviews Africa correspondent Lee Kasumba

'Minnie understood he might become a target'

'Minnie understood he might become a target'

Marianne Thamm wrote the forward to 'The Lost Boys of Bird Island' and worked with Mark Minnie in editing the controversial book.

[WATCH] Dad dresses up as a mom so his sons don't feel left out on Mother's Day

[WATCH] Dad dresses up as a mom so his sons don't feel left out on Mother's Day

Khabazela shares Facebook posts, YouTube videos that have gone viral including one with the smartest dogs.

Nxasana questions why Minister Masutha's involvement is not being challenged

Nxasana questions why Minister Masutha's involvement is not being challenged

Former NDPP Mxolisi Nxasana says he didn't know the payout he received was a golden handshake.

[LISTEN] Is your phone listening in on your conversations?

[LISTEN] Is your phone listening in on your conversations?

MD at World Wide Worx Arthur Goldstuck explains how your phone may record your voice conversations.

JHB CBD muggings - Where are the police ?

JHB CBD muggings - Where are the police ?

City of Joburg mayor Herman Mashaba says undocumented people living in the city make it difficult to combat crime.

'Black Tax'... working hard, earning well, but struggling financially

'Black Tax'... working hard, earning well, but struggling financially

Young(ish) South Africans tell stories of the mixed emotions they feel when supporting family members, and tips from an advisor.

Castro bodyguard shares tales of dictator’s double life and breath-taking wealth

Castro bodyguard shares tales of dictator’s double life and breath-taking wealth

Juan Sanchez shares stories of Fidel Castro that’ll make you re-examine everything you thought you knew about the Cuban dictator.