Restraint of trade

[Piernas Flacas]

Hi hubbers!

 

My wife's company is going through working hours and salary cuts due to the harsh economic environment. She hasn't signed the proposed cut yet, and if she doesn't, she'll probably face retrenchment. She has a restraint of trade. She wants to know if it would be enforceable if she leaves the company for the competition. Any advice? Thanks!

[IceCreamMan]

Restraint of trades are generally very difficult if not impossible to enforce. However, without the details of the this particular RoT its difficult to comment. How was the original RoT set up?

 

If she is retrenched then the emphatic answer would be no , its def not enforceable unless she gets a payment of sorts to enforce it.

 

Companies try all sorts of legalese to instil fear in employees regarding RoT but the reality is that unless she is a CEO or very senior manager or privy to incredibly sensitive information etc they are difficult to enforce as one is entitled to earn a crust.

[Piernas Flacas]

Thanks for the feedback, ICM. I don't know the details of the RoT. I'll ask her. She's a senior project manager, that's all.

[RocknRolla]

Unless the ROT is industry specific, I don't see how it is enforceable. 

Luckily PM is almost a one-size fits all type of vocation.

[stefmeister]

Restraint of trades are generally very difficult if not impossible to enforce. However, without the details of the this particular RoT its difficult to comment. How was the original RoT set up?

 

 

This. Although I'm not a labour law expert, from what I've seen, no company can/may prevent you from earning a living (common law?). Follow that angle and you should be safe.

[kosmonooit]

If there is an explicit and reasonable agreement, say you can not have any contact whatsoever with the current customer base for a period of x months after leaving regardless how you leave, and that is breached, you could have a problem. So the agreement should be reviewed, preferably by a lawyer. Going to work for someone else in the same industry, and there are circumstances making you do that, seems a bit unfair if the agreement prohibits that.

 

That said, I got shafted (Naaid by who?) by a lady that worked for me for 15+ years, she actually started moving business to her own enterprise whilst still in my employ. After she left I tried to do something about it but looking at legal fees and hassles, I decided to let karma sort it out.  But a company with money to throw at lawyers probably will not feel the same way..

 

She even copy & pasted the "about" splurb from our website for hers ffs. Cretin.

Edited July 2, 2019 by kosmonooit

[Stretch]

Group of us left a company... Some clients jumped ship. Company bombarded us with legal letters... We paid a tame lawyer to respond and then left it.. Nothing ever transpired. This was also jse listed company owned by a certain Mr King... So it's not like they didn't have the money to take the fight the distance..... We lost out ultimately because we were subcontracting to them and they never paid us for two months work because of all that... But they couldn't enforce the restraint

[Stretch]

Not sure why it posted twice

Edited July 2, 2019 by Stretch

[Piernas Flacas]

Unless the ROT is industry specific, I don't see how it is enforceable. 

Luckily PM is almost a one-size fits all type of vocation.

Her PM role is quite specific for the industry she works in. I hope she'll be ok. 

 

Thanks, guys. I'm waiting for my wife to send me her contract and see the RoT specifics. 

[Pure Savage]

Yeah, good luck her current company enforcing ROT. Especially if retrenching, I would not worry about it.

[RocknRolla]

She must have whatever they ask her to sign (retrenchment or voluntary resignation) checked by a labor lawyer. 

[Harryn]

If she takes a voluntary retrenchment package, she must insist on a clause in the separation agreement releasing her from the restraint.

[Allrounder]

If she takes a voluntary retrenchment package, she must insist on a clause in the separation agreement releasing her from the restraint.

I like this idea

[Stretch]

If she takes a voluntary retrenchment package, she must insist on a clause in the separation agreement releasing her from the restraint.

And if they retrench her they can't hire a project manager for 1 or 2 years....I forget which one it is

[Red Robin]

And if they retrench her they can't hire a project manager for 1 or 2 years....I forget which one it is

It would be whatever the time period given in the original Section 189 letter.

[Harryn]

It would be whatever the time period given in the original Section 189 letter.

Yeah, but that’s often abused. The lawyers conjure up the 189 letter, the staff walk with their packages, and 3 minutes later the company realises they cant run without the key people they retrenched, and boom they recruit. Often re hire the same people on fixed terms.