The Relationship between Restraints of Trade and Garden Leave

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Abstract

The purpose of the article is to examine the relationship between a so-called "garden leave" clause and a post-termination restraint of trade clause in employment contracts, in view of the decision in Vodacom (Pty) Ltd v Motsa 2016 3 SA 116 (LC). The Labour Court grappled with the question of whether the enforcement of the garden leave provision impacts on the enforcement of a post-termination restraint of trade clause. Enforcement of both these types of clauses may be problematic. It can result in unfairness if an employee ends up being commercially inactive for a long period. The author argues that garden leave has a direct effect on the enforcement of a post-termination restraint of trade clause. Accordingly, a restraint of trade will be enforced only if the employer's proprietary interest requires additional protection beyond what is achieved under the garden leave clause.

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Labour Law

Hugh Collins, K. D. Ewing, Aileen McColgan (2012)

Building on their successful cases and materials book, Collins, Ewing and McColgan present an entirely restructured and freshly written new textbook on employment law. Comprehensive and engaging, it combines detailed analysis and commentary on the law with short contextual extracts to fully equip the labour law student. Carefully balancing clear exposition of legal principles with critical and scholarly analysis, this is the definitive textbook on the subject written by the UK's foremost employment law scholars. The book's 20-part structure maps logically onto either a full or half module employment law course. Chapter introductions and conclusions and an uncluttered text design carefully guide the student through the material. Innovative case studies show the law 'in action' and discussion of the globalised workplace gives the work a contemporary feel. Put simply, this is required reading for all students of the subject.