Understanding Trade Agreement Restraints

What the Court Said

A recent ruling from the Western Cape High Court clarified when employers can enforce restraint‑of‑trade clauses. The court confirmed that such agreements are valid unless they are unreasonable or go against public policy. The party trying to avoid the restraint must prove that it cannot be enforced.

Background of the Case

Fidelity Services Group tried to stop a former employee, Robin Goveia, from working for a rival security firm, Mach 1 Security. Fidelity argued that Goveia had signed a three‑year, nationwide restraint preventing him from engaging in any similar business or poaching customers after he left the company in September 2025.

Why the Restraint Was Challenged

After leaving Fidelity, Goveia joined Mach 1 Security as a closed corporate member in December 2025. Fidelity claimed he was using confidential information and approaching its customers to solicit business. The company sought an emergency court order to enforce the restraint.

Skills vs. Secrets

The judge examined whether Fidelity had a legitimate interest worth protecting. While acknowledging that Goveia’s experience and knowledge helped Mach 1 Security expand into monitoring and response services, the court ruled that general skills and experience are part of an employee’s life abilities and cannot be blocked. Only true trade secrets or confidential information merit protection, and there was no evidence that Goveia disclosed or used such information.

What This Means for Employees and Employers

Key Takeaways

• Restraint‑of‑trade clauses are enforceable only when they protect a legitimate business interest, such as trade secrets.
• General skills, knowledge, and experience gained on the job belong to the employee and can be used elsewhere.
• Employers must show that the restraint is reasonable in scope, duration, and geographic area.
• Employees challenged by a restraint must demonstrate that it is unreasonable or against public policy to avoid enforcement.

Tips for Teens Entering the Workforce

• Read any employment contract carefully, especially sections about post‑employment restrictions.
• Ask questions if a clause seems overly broad—does it stop you from using skills you’ll need in any future job?
• Keep personal notes and work separate; avoid taking confidential documents or data when you leave a job.
• If you’re unsure about a restraint, seek advice from a trusted adult, teacher, or legal aid service.

Conclusion

The court’s decision reinforces a long‑standing principle: employers can protect genuine business secrets, but they cannot stop former employees from using the ordinary skills and experience they acquire on the job. For young workers, understanding the limits of restraint‑of‑trade clauses helps them navigate career moves confidently while respecting legitimate business protections.