Mr. H accepted an offer of employment from a company called Pointer SA (Pty) Ltd.
But his previous employment contract had a restraint of trade clause in it. This is usually a clause that prevents you from working for another competitor for a period of time after you leave.
When he reported for duty at his new workplace he was told that he had not met the conditions of the appointment because he had not supplied the new company with a letter releasing him from his previous restraint of trade. So Mr. H was dismissed.
Having resigned from his previous workplace, and now dismissed from the new one, he opened a case at the CCMA.
At the CCMA, the Commissioner found that Mr. H was bound by a 12-month restraint of trade agreement with his previous employer, because the new employer was in direct competition with the old employer.
Also Mr. H was in possession of confidential information from his previous employer.
Therefore the CCMA concluded that by Mr. H Signing a fresh contract with a competitor amounted to misconduct on his side and his dismissal was justified.
However, his dismissal was procedurally unfair because the new employer did not give him a hearing before he was dismissed.
So Mr. H applicant was awarded 4 months compensation – which equated to R131 484.
Key takeaway:
Never resign without making sure all your bases are properly covered
Or else you will be out of a job and no income
