Study Unit 4

Question 1

What is an employees duty to report and render competent services?

Answer 1

Employee is capable of doing their work with diligence and care

Question 2

What is vicarious liability?

Answer 2

When an employee acts in the course of their employment , the employer is responsible for the wrongful acts committed by the employees and a third party has the right to choose against whom they will institute their claim

Question 3

Emplyee’s duties

What is the duty to be respectful and obey lawful instructions?

Gross Insubordination

Answer 3

An employee is subject to authority of the employer and must not commit gross insubordination

Gross insubordination is breach of contract and amounts to termination o

Question 4

What is the employees duty to render services in good faith?

Fiduciary duty of employee

Answer 4

An employee is in a position of trust with the employer

Employee must protect the interests of employer and not be in a conflict

Question 5

Duty of Good Faith Case Law

What did the Phillips case state regarding an employees duty of good faith?

SCA Decision

Answer 5

Employee made secret profits on shares with knowledge that the employer planned to purchase them. Court ruled in favour of employer and ordered employee to pay earnings

Breach of this duty is a fair reason for dismissal

Question 6

What is a restraint of trade provision?

Answer 6

After termination of contract the employee is prohibited from performing similar work in competition with the previous employer within a a specific area or period.

Question 7

Restraint of Trade Case Law

What did the Magna Alloys case state regarding a restraint of trade?

Onus of proof

Answer 7

Restraint of trade are valid until the employee contests its enforcability and the clauses are not contrary to public policy

Employee bears onus of proving it is contrary to public policy

Question 8

Reasonableness of Restraint of Trade Case Law

What factors determine reasonablness according to Basson v Chilwan?

These factors are questions

Answer 8

1. Does restraint cover legitimate
   interest of employer
   2.Is employee prejudicing interest of
   employer
   3.If so, does the employer’s interest
   outweigh the employee’s interest
   4.is there any aspect of public policy which requires the restraint to be enforced?

Question 9

Enforcability of a Restraint of Trade Case Law

What did the Sadan case state regarding the enforceability of a ROT clause?

Employees couldn’t work in 50km radius for 2 year period

Answer 9

Court has the power to partially enforce a restraint of trade clause

Court reduced time frame to 1 year

Question 10

what are the 3 duties of an employer?

Answer 10

1.To remunerate the
employee
2.To provide safe working
conditions
3.To treat the employee
with respect
and dignity