Can a non-compete clause hold up in Ontario?

What are the current guidelines for a non-compete clause that will hold up under legal scrutiny in Ontario, and what remedies does an employee have if faced with an overly-broad clause? What is a Non-Compete Clause?

What is a non-compete clause in an employment contract?

What is a Non-Compete Clause? A non-compete clause is a form of a restrictive covenant, generally built into an employment contract, which spells out restrictions on the employee with respect to future work should they eventually leave their current employer.

Do you need a lawyer for a non-compete clause?

Any employer seeking to draft or enforce a non-compete clause should seek the advice of a skilled employment lawyer. As established above, clauses must be carefully drafted in order to withstand the scrutiny of a court, and may not apply in every circumstance.

Can a non compete agreement be binding on both parties?

Make sure that you actually signed the agreement, and that a corporate representative with power to bind the company also signed the agreement. Without the signature of both parties, a contract such as a non-compete agreement is not binding on either party.

Can a non-compete clause be waived if you are fired?

In most cases, the non-compete clause still holds even if you are fired or laid off. However, you may be able to request that your former employer waive the clause. In such circumstances, employers are sometimes more open to waiving the clause.

Can an employer enforce a non-compete against me in?

The statute clarifies first that noncompetition agreements must be in writing and signed in order to be enforceable. Then, when an employee challenges the validity of a non-compete clause, the employer must show the existence of one or more legitimate business interests justifying the noncompete provision.