Five ex-employees of an Ermelo car dealership, who were blocked from working within 300 km of their hometown in a restraint of trade case, have won their legal battle on appeal.
A court found that their former employer, Twenty Four Motors - trading as Ford Ermelo - overreached when it insisted they not work for another car dealership within 300km of the Mpumalanga town after they resigned.
It also found that the Johannesburg Labour Court, which first heard the case last year, erred in agreeing with their ex-employer that they be blocked from working 'in any way whatsoever' for a year at a competitor.
'[Ford Ermelo] proved no evidence of confidential information, trade secrets, or trade connections held by the former employees that warranted protection,' said the Labour Appeals Court in a new ruling penned by Judge Kate Savage.
'It was not proved that the appellants were aware of trade secrets or had trade connections,' she added.
