Ogletree, Deakins, Nash, Smoak & Stewart, P.C. (JD Supra South Africa)
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High Court of South Africa Decision Provides Hints on Relationship Between Terminating an Employment Contract and Dismissing an Employee
A recent case decided by the High Court of South Africa dealt with the curious interplay of an employee’s rights as they arise from both a written contract of employment and labor legislation. Although the judgment may at first seem confusing, a careful analysis sheds light on how these parallel sources of rights and obligations operate in conjunction.
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South Africa’s Labour Court Rules Garden Leave and Noncompetition Clauses Enforceable
On February 9, 2016, in a victory for South African employers, South Africa’s Labour Court in Johannesburg addressed for the first time the applicability of garden leave in assessing the reasonableness of a post-termination noncompetition covenant (called a “restraint of trade undertaking” in South Africa).