Employers have the option of including a non-compete clause in
an employment contract. The enforcement of this clause can provide
an employer with the security of knowing that their former employee
will not immediately join up with a competitor. The inclusion of
this clause may appear to provide employers with peace of mind
without any potential draw backs. The British Columbia Superior
Court in Ostrow v Abascus Management Corporation
Mergers and Acquisitions reminded employers that the
enforcement, or even inclusion of a non-compete clause comes with
potential risks.
In Ostrow an 11 month employee was awarded 6
months' pay in lieu of notice in a wrongful dismissal case in
part because of the employer's inclusion of a non-compete
clause. Ostrow, a 42 year specialist in international and US
taxation was terminated on a without cause basis. In his
termination letter he was reminded of the existence of a
non-compete clause in his contract – as a result he did not
take
