Protect Non-Compete Agreement fast and easy

Easy guide on how to Protect Non-Compete Agreement

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How to Protect Non-Compete Agreement

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In 2021, President Biden urged the Federal Trade Commission to ban non-compete agreements. A non-compete clause requires an employee to refrain from working for a competitor for a specified period, often resulting in no pay during that time. For instance, a three-month non-compete would mean the employee cannot start a new job or earn an income for those three months. Such agreements deter employees from pursuing better opportunities and higher wages, particularly in industries like finance and fintech. If non-compete agreements are banned, it is estimated that over $300 billion in wage potential could be reallocated to new roles.

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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Can I join a competitor company in Canada?

If you did not execute an employment agreement, you are free to leave and work for a competitor. An exception to this would be those in managerial or high signatory roles. Employees of such nature may have a fiduciary duty to the employer which may limit their ability to work for a competitor.

What is an example of a non-competition clause in Canada?

An example of a non-compete clause is The Employee agrees not to establish a competing business or otherwise engage in competition with the Employer within a 30 km radius of the Employers offices for a period of 2 years from the date of the termination of this contract.

How do I get around a non-compete agreement?

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.

Do non competes hold up in court Canada?

The application judge applied the common law, which governed the parties rights and provides that even a non-competition agreement entered into freely is unenforceable, unless it is reasonable as between the parties and with respect to the public interest.

Is non-compete legal in Canada?

Employers are no longer permitted to issue non-compete agreements to their employees in Ontario. The province is the first in Canada to implement this ban, which came into effect on December 2, 2021. What is a non-compete agreement?

Does Canada have non-compete clauses?

The province is the first in Canada to implement this ban, which came into effect on December 2, 2021. What is a non-compete agreement? It is a document, that once signed by the employee, guarantees that they will not work for a competing business once their employment relationship ends.

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