Carlos Joel Tchawouo Mbiada
University of Venda

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Restraint of Trade Clause in the Digital Economy: South African and Islamic Law Comparison Carlos Joel Tchawouo Mbiada
Asy-Syari'ah Vol. 27 No. 1 (2025): Asy-Syari'ah
Publisher : Faculty of Sharia and Law, Sunan Gunung Djati Islamic State University of Bandung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15575/as.v27i1.44545

Abstract

Abstract: A Restraint of Trade clause stands between employers to safeguard legitimate protectable interests and the employee's right to exercise a profession freely. Therefore, this research aims to conduct a comprehensive examination into enforcing restraint of trade agreements in South Africa, critically analyzing the judiciary's balance between the legitimate protectable interests of employers and the constitutionally enshrined right of employees to freedom in occupation and profession. A doctrinal review of key South African case law is carried out, where judicial enforcement depends on a value judgment between public policy and contractual freedom, particularly under section 22 of the Constitution. Furthermore, this research engages with the Islamic legal framework on restraint of trade, drawing on foundational concepts such as hurriyat al-kasb (freedom to engage in lawful trade), gharar (prohibition of uncertainty), and the ethical obligations embedded in shurut (contractual conditions). The results show that Islamic jurisprudence imposes strict moral limitations to ensure no clause unjustly inhibits a worker’s right to earn a lawful livelihood while acknowledging the sanctity of contracts. Selected Islamic countries legally approach restraint of trade clauses within a legal system grounded in Sharia principles and statutory law as reported through a comparative analysis. The implications of restraint clauses are also assessed in the context of a digitalized economy, where traditional notions of geographic and jurisdictional limits become blurred. In the absence of precedent, South African courts can rely on territoriality (place of work) or nationality principles (parties’ origin) to determine jurisdiction over cross-jurisdictional digital labor disputes. The contribution advocates for the creation of a robust legal framework to address restraint enforcement in virtual environments, striking a balance between innovation-driven business protection and the fundamental rights of workers under constitutional and Islamic legal traditions.
Perintah Struktural sebagai Upaya Pemulihan Yudisial atas Pelanggaran Hak-Hak Sosial dan Ekonomi: Pembelajaran dari Changing Tides 74 (Pty) Ltd v City of Johannesburg Lupwana Jean Jacques Kandala; Carlos Joel Tchawouo Mbiada
Jurnal HAM Vol 17 No 1 (2026): Edisi April
Publisher : Badan Strategi Kebijakan Hukum

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30641/ham.2026.17.35-52

Abstract

This paper analyses the High Court’s judgment in Changing Tides 74 (Pty) Ltd v City of Johannesburg, a landmark ruling on the intersection of delict law, constitutional rights, and state accountability for failing to comply with a court order to provide alternative accommodation to illegal occupiers. The dispute arose from the City of Johannesburg’s (the City's) failure to comply with a 2012 court order, which compelled the City to provide emergency accommodation to unlawful occupiers prior to their eviction. The failure of the City resulted in the applicant suffering significant economic loss because it had to house the occupiers for three years. The Court found the City liable in delicts for its wrongful and negligent failure to comply with the 2012 court order. The court further found that such conduct infringed both the property rights of the applicant and the right to access to housing of the occupiers. Using a doctrinal legal research method, this research critically assesses the enforceability of structural interdicts, confirms the scope of constitutional delicts, and reemphasises the financial accountability of municipalities that fail to comply with court orders. The research also clarifies the extent of government entities' obligations concerning socioeconomic rights.  By awarding over R12 million in damages and punitive costs, the court set a strong precedent for state compliance with socio-economic rights obligations. This paper also considers the broader socio-political implications of the ruling, especially its potential to catalyse reform in municipal governance, human rights enforcement, and intergovernmental relations in service delivery.