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News24 reports that contractual clauses preventing employees from seeking alternative employment are unenforceable and contrary to public policy.
This was the finding of the Joburg Labour Court (LC) after a safety manager’s quest for “greener pastures” ignited a fierce legal battle that exposed the limits of employer control over their workforce. When Lucchini SA employee Vishen Mahabeer began searching for new employment opportunities in early 2021 it cost him his job and sparked a landmark labour dispute. The company initiated retrenchment consultations in February 2021 and Mahabeer opened employment negotiations with competitor Cast Products. In April 2021, Mahabeer informed Lucchini of his intention to resign and join Cast Products. The company suspended him and the subsequent disciplinary hearing resulted in Mahabeer’s immediate dismissal, which he refused to accept. He took his case to the CCMA, which found dismissal grossly unfair and awarded him maximum compensation of 12 months’ salary. Lucchini’s subsequent court challenge backfired.
On Friday, the LC’s Judge Tapiwa Gandidze struck down Lucchini’s contractual clause prohibiting employees from seeking alternative employment, ruling it “unenforceable as it is contrary to public policy”. She emphasised that Mahabeer had a right to freedom of trade, occupation and profession, guaranteed by section 22 of the Constitution. While reducing the compensation from 12 months to six months due to Mahabeer securing new employment within three months of his dismissal, Judge Gandidze acknowledged the emotional toll.
- Read the full original of the report in the above regard by Anelisa Kubheka at News24 (subscription / trial registration required)
Get other news reports at the SA LabourNews home page