Non Compete Agreements Canada

The geographic area of a non-compete clause should not be too broad. A strong non-competition clause should not prevent the worker from working where the employer is not active (i.e. “all of Canada”). In addition, a non-competition clause should not be broad enough to deter the worker from working in a city (i.e., “within 100 km of the City of Toronto radius”). The courts have taken a double-edged sword in their refusal to apply most non-competition clauses on the basis of commercial promotion. On one side of this sword, the courts have promoted the freedom of the individual to work as he sees fit. At the other end of this sword, the courts have protected the interests of the Community by refusing to impose competition bans because such restrictive alliances prevent individuals from earning a living and contributing to society and the tax base. In this context, it is not unreasonable for an employer to think about limiting what employees can do after leaving the company. In employment contracts, there are two types of clauses that are used for this purpose: the non-counting clause and the non-solicitation clause. For example, a non-compete clause in an employment contract might look like this: a non-compete clause is an agreement between you and the employee that after he leaves, it will not compete directly with your company for a certain period of time. This usually means they can`t start a business similar to yours. You may also not be able to work for your competitors or other similar companies.

Dutton Employment Law is a law firm that focuses on the development, application and interpretation of non-compete clauses. We support Canadian employers and workers in all labour law matters. Talk to an employment law specialist if you want to know more. The Ontario Superior Court recently reminded employers that non-compete prohibitions on employment contracts are generally worth less than the paper on which they are written. In Ceridian Dayforce Corporation, Judge Kristjanson refused to impose a non-compete clause that a software company had included in its employment contract with a software engineer involved in program development. This case is a good reminder to employers that the development of restrictive agreements in employment contracts requires careful attention. It is important that employers only include restrictive alliances that apply. Like the BC Court of Appeal, the Ontario Superior Court has pointed out that a federation for not competing in the employment context is a trade restriction and therefore prima facie is generally prima facie void. As a result, non-competition prohibitions will be thoroughly considered in the employment context and will only be applicable if they are appropriate between the parties and if they address the public interest. The court will seek a legitimate interest in ownership that can only be protected by a non-competition clause.