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      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

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            The Law of Contract in South Africa

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              Christie's The Law of Contract in South Africa

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                Author and article information

                Contributors
                Role: ND
                Journal
                pelj
                PER: Potchefstroomse Elektroniese Regsblad
                PER
                North-West University (Potchefstroom Campus) (Potchefstroom, North-West Province, South Africa )
                1727-3781
                2017
                : 20
                : 1
                : 1-22
                Affiliations
                [01] orgnameUniversity of the Western Cape South Africa ychandaengerwa@ 123456uwc.ac.za
                Article
                S1727-37812017000100034
                10.17159/1727- 3781/2017/v20i0a1278
                d85dcd42-c608-44b9-aaf4-294339d73bbc

                This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

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                Figures: 0, Tables: 0, Equations: 0, References: 15, Pages: 22
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