Law
...of employment. I have been asked to advice both of them on the law of restrictive covenants. In this essay I aim to provide clear advice on how they should over come their problems.
2 Restrictive Covenants
Restrictive covenants is where the ability to work after you leave a job is constrained. Where ever the person in question pleases to work, who they please to work for or if the new position is connected to the field of work with their previous employer is forbidden under restrictive covenants. Contracts in restraint of trade are void, however restrictive covenants are enforceable if they can be shown to be unreasonable in the interest of the parties e.g "Worldwide restriction was reasonable
interim interdict renewed" and unreasonable in the interest of the public e.g "attempt to prevent existing his existing customers being enticed away" .
3.0 Bill's Legal Problem
Bill works for a company called Worldwide Pharmaceuticals Plc. He has been offered a position at Global Pharmaceuticals Plc. However he is concerned that his contract restricts him for working for trade competitor for two years should he leave Worldwide Pharmaceuticals Plc.
Worldwide Pharmaceuticals are seen to be unreasonable. They don't want Bill to work for another company, which specialises in the same area of trade they do for a time period of two years. This is unreasonable, as Global Pharmaceutical plc has offered Bill a far more lucrative salary than he receives at Worldwide Pharmaceuticals. Bill has been with Worldwide Pharmaceuticals for five years. His contract may contain a clause for stating that a competitive salary is in place, if this is the case then the company Worldwide Pharmaceuticals who have not offered to match the rival company's offer, and then they have breached the contract making the contract void. Bill's existing employers are...
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