Document background
An Active Non-Compete Agreement is essential in South African business contexts where protecting legitimate business interests is crucial. This document is commonly used when hiring senior executives, during business acquisitions, or when engaging key employees with access to sensitive information. The agreement must carefully balance the protection of business interests against the constitutional right to trade freely, as established in South African law. It typically includes specific provisions about restricted activities, geographic limitations, and duration, all of which must meet the reasonableness test established by South African courts. The document should be drafted with consideration of the Competition Act, Labour Relations Act, and relevant case law, particularly the principles established in the Magna Alloys case. Key elements include clear definitions of restricted activities, reasonable temporal and geographical limitations, and appropriate consideration for the restrictions imposed.
