Document background
The Non-Compete in Severance Agreement is utilized in South Africa when an employer and employee are terminating their employment relationship and need to establish both separation terms and future competitive restrictions. This document is particularly relevant in situations where the employee has had access to sensitive information, key client relationships, or trade secrets. The agreement must comply with South African constitutional principles, labor laws, and common law regarding restraint of trade. It typically includes details of the severance package, specific restrictions on future employment activities, geographic limitations, and duration of the non-compete period. The document should be carefully drafted to ensure enforceability under South African law, which generally recognizes restraint of trade provisions but requires them to be reasonable in scope and supported by legitimate business interests.
