Document background
The Severance Pay Non Compete Agreement is a critical document used when an employment relationship is terminated and the employer wishes to protect its legitimate business interests while providing severance benefits. This agreement is particularly relevant in South Africa, where it must balance the constitutional right to freedom of trade and occupation with the employer's right to protect its business interests. The document typically comes into play during voluntary separation, retrenchment, or mutually agreed termination scenarios. It includes detailed provisions for severance compensation, specific restrictions on future employment activities, and must comply with South African labour law requirements, including the Basic Conditions of Employment Act and common law principles on restraint of trade. The agreement is especially important for employees who have had access to confidential information, trade secrets, or key client relationships.
