Non Compete Agreement Canada
Check out our latest blog post to see an example of how a very long non-compete clause usually requires a payment instead of one. Whether your non-compete agreement applies to you is not something you should leave to chance, try to clarify on your own or refer to the advice of an inexperienced general practitioner or lawyer. The correct interpretation of a non-competition clause stems from several years of experience in the development, control and removal of these clauses. The Whitten-Lublin team of experienced work lawyers can help you determine when and when a non-compete clause is tried. If you have signed a non-competition agreement and need the advice of a specialist lawyer, call Whitten-Lublin for legal advice. The temptation to use expansive language and association words must be resisted. As the IRIS and Ceridian cases point out, such a language can only be used to introduce an element of ambiguity and to extend the scope of the non-competition clause beyond what must be covered and therefore may ultimately not be protected. Canadian courts are reluctant to enforce competition bans on employment contracts. That is why these clauses are probably not applicable unless very specific criteria are met. To be applied, the clause must be sufficiently limited in its geographical application, in the time it covers and within the limits of the activities that the former employee may carry out. The courts aim to maintain the objective of public policy to retain workers in order to contribute to the tax base and will apply only the most specifically formulated and narrowest non-competition clauses. Workers are often concerned about their opportunities as soon as they leave their former employer and, for reasons of appeasement, it is important to seek legal advice and professionally assess non-competition prohibitions. Employers should also bear in mind that the courts will not read or resolve an unenforceable non-competition clause.
It is therefore often preferable, during the development, to have a more limited, but more reliable and enforceable opposable language than a broad but unenforceable clause. In Ceridian, the court refused to apply the non-competition clauses for the following reasons: a resting clause means that the employee agrees not to attract other employees outside your company. You also can`t involve your customers as soon as they leave. Unlike a non-competition agreement, your non-invitation clause is much easier to enforce, as long as you absolutely make sure it is clear, reasonable and quite clear in the eyes of the law. An employer who violates an employment contract and terminates the employee cannot rely on non-competition clauses, otherwise the employer could benefit from his own breach of contract. The Alberta Court of Appeal in Globex Foreign Exchange Corporation v. Kelcher stated that an employer who unfairly dismisses a worker could not rely on the contractual non-competition clause.