Digicore Fleet Management (Pty) Ltd v Steyn and Another

Ms Maryanne Steyn was employed by Digicore Fleet Management (Pty) Ltd as a sales executive for vehicle tracking devices from May to December 2006. Her employment contract contained a restraint of trade clause prohibiting her, for two years after termination, from working for a competing business within a defined geographic area. Steyn had prior experience in the vehicle tracking and insurance industries and brought with her valuable contacts with insurance brokers in the Durban area. After a short period of employment, she resigned and commenced employment with Smartsurv Wireless (Pty) Ltd, a competitor of Digicore. Digicore sought to enforce the restraint of trade, alleging that Steyn had access to confidential information and client lists and had solicited Digicore’s clients. Steyn denied receiving confidential information or training from Digicore and maintained that she relied only on her pre-existing knowledge and contacts.

The appeal was dismissed with costs, and the order of the High Court refusing to enforce the restraint of trade was confirmed.

The case reaffirms South African principles governing restraints of trade, particularly that employers must prove a protectable proprietary interest that is actually threatened. It emphasises that an employee’s general skills, experience, and pre-existing customer connections are not protectable interests, and that restraints will not be enforced merely to limit competition or economic activity.