Bonfigioli South Africa (Pty) Ltd v Panaino (CA 19/13) [2014] ZALAC 59; [2014] JOL 32441 (2015) 36 ILJ 947 (LAC) (23 October 2014) per CJ Musi JA [Murphy AJA and Setiloane AJA concurring]

Appeal allowed and Labour Court’s judgment set aside with costs.

 LAC summary:

Restraint of trade agreement and retention bonus- parties entering into a retention bonus and restraint of trade agreements – meaning and purpose of restraint of trade and retention bonus distinguished- restraint of trade agreement preventing employee to compete with his/her ex-employer after termination of employment – retention bonus rewarding employee for staying in the employment of the employer.  Interpretation of a deeming clause for the purpose of the termination of employment.  –

Employee resigning from employment- Labour Court finding that the deeming clause defining exclusively the termination of employment- Appeal – Deeming clause expanding the meaning of termination of employment to make it difficult for the employee to get the retention bonus- Restraint of trade starting after the termination of employment.