IN GOOD FAITH
CARMEL RICKARD: Trade secrets
Restraint of trade clauses aim to protect companies’ interests — but an over-broad formulation has left one company with no such protection at all
A new labour court decision has a lesson for employers: don’t cry wolf in the workplace with unreasonable restraint of trade conditions or you will come off second best. In Aquatan vs Jansen van Vuuren the company tried to handcuff its employee with an unreasonable restraint, but lost out completely even though the court found it had a protectable interest. Two elements make the case especially interesting. First, the former employer spoke of Jansen van Vuuren’s "technical skills and experience" and the fact that he could strategically apply them to give his employer a competitive advantage.But that is an innate quality of the man. As the court put it, this ability has a value without reference to any of the applicant’s secrets. It is an ability to strategically apply general technical knowledge and experience to the advantage of an employer and "does not belong to [Aquatan]". The second element is more important. In SA, a restraint may be enforced unless it is unreasonable — but th...
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