The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
This case presented the first instance where South African labour courts were called to determine the relationship between a garden leave clause and a post termination restraint of trade clause where a contract of employment contained both.
The court considered whether the applicant had waived its right to enforce the notice period by terminating the first respondent’s employment with immediate effect and the reasonableness of the duration restraining the commercial activity of the first respondent in the garden leave clause and/or the post termination restraint clause.
The court held that the applicant was entitled to enforce the period of the garden leave and the post termination restraint of trade clause. The court adopted the rule that a garden rule provision should be taken into account when determining the reasonableness of the restraint duration. The court also took into account the seniority of the first respondent that exposed him to confidential knowledge of the applicant’s business and held that the cumulative restraint period of 12 months was reasonable.
Accordingly, the court granted the application and declared that the first respondent’s contract of employment terminated on 30 June 2016 and that he was restrained from disclosing any confidential information or engaging in any commercial activities with competitors until 31 December 2016.