Is a non-competition undertaking legally valid and binding?
Yes, non-competition undertakings are recognised and upheld by the courts. Non-competition undertakings given by employees must be reasonable in regards to time, territory and type of employment to what is necessary for the protection of the legitimate interests of the employer. In other words, a lifetime and worldwide non-competition agreement may be struck down by the courts as being unreasonable. Generally a court will not uphold a non-competition undertaking given by an employee if in so doing the employee is unreasonably prevented from earning a living. In the case of non-competition given in other circumstances such as the sale of a business, the courts will be more flexible insofar as the signatory is not unreasonably prevented from earning a living.
