Document background
The Non-Compete Contract is a crucial legal instrument in South African business relationships, primarily used to protect legitimate business interests, trade secrets, and competitive advantages. It is commonly implemented when hiring senior executives, during business sales, or in partnership arrangements. The document must carefully balance the employer's protectable interests against the constitutional right to trade and South African competition law requirements. Key considerations include reasonable duration (typically 6-24 months), geographic scope, and specific restricted activities. The agreement must comply with South African common law principles established in cases like Magna Alloys, and consider both the Competition Act and Labour Relations Act. Particular attention must be paid to ensuring enforceability through reasonable restrictions and clear definition of legitimate business interests being protected.
