Non-competition clauses are restrictive covenants that courts
often deem unenforceable. But what about non-solicitation clauses?
Are non-solicitation clauses strictly controlled?
What is a non-solicitation clause vs. a non-competition
clause?
A non-solicitation clause restricts an employee, from soliciting
customers, clients, staff, accounts, or vendors during their
employment, and for a specified period of time when they depart the
business. Non-competition clauses restrict an individual from
competing directly with the business, during and after their
departure, including working for a competitor or starting their own
business.
The seminal Supreme Court of Canada case Elsley Estate v JG
Collins1 indicated that non-solicitation clauses
often suffice in protecting an employer's proprietary interest
whereas non-competition clauses go too far. Since Elsley
Estate, Ontario courts have been consistent in upholding
reasonable non-solicitation clauses because they
