A Proposed Ban on Non-Competes
Photo by Bernard Hermant on Unsplash

On October 25, Ontario Bill 27, Working for Workers Act, 2021 (“the Bill”) passed first reading. This Bill proposes amendments to our key Ontario employment statutes, including the Employment Standards Act, 2000 (the “ESA”) and the Occupational Health and Safety Act. In today’s post, we will review highlights regarding the proposed ban on non-competes and talk about how Ontario businesses can prepare. 

A Ban On Non-Competes

One much-discussed element of the Bill is the proposed ban on non-competition agreements in employment contracts. 

A non-competition agreement restricts – or tries to – an employee’s ability, for a period of time, to work for a competitor after leaving the employer. The restriction is usually somewhere between three months to two years. 
Continue Reading A Proposed Ban on Non-Competes

Many restrictive convenants in agreements unenforceable
Image by Edar from Pixabay

We get a lot of questions from employers and employees about restrictive covenants. Many employment contracts include a restrictive covenant – a contractual clause that seeks to limit an employee’s ability to solicit the employer’s clients and/or employees and/or to compete for those same clients in the same geographical area once the employee leaves the employer.

Courts generally find restrictive covenants in employment agreements unenforceable, unless they are reasonable between the parties and not adverse to the public interest. Typically, if a restrictive covenant is ambiguous with regards to time, activity or geography, it will not be enforceable. Let’s take a look at non-solicit agreements.
Continue Reading Non-Solicit Provisions in Employment Contracts – What You Need to Know