Taut Knots Require Strong Rope: A Discussion of the Factors that Must Be Considered When Enforcing Restraint-of-Trade Agreements Sadan v Workforce Staffing (Pty) Ltd [2023] ZALAC 14

Abstract

The Labour Appeal Court (LAC) in Sadan v Workforce Staffing (Pty) Ltd ([2023] ZALAC 14) had to decide whether the enforcement of restraint-of-trade agreements in respect of their territorial operation and duration was unreasonable. The judgment is significant as the court emphasised and confirmed that in deciding whether to enforce a restraint-of-trade clause, issues of reasonableness, the interests of the parties and public policy will be the touchstones of the enquiry. Furthermore, employers who seek to enforce long restraint-of-trade agreements will need to provide the court with proper justification if they wish to enforce those agreements.