Employee Non-Competition Covenants: No Place For Blue Pencils

Article by George Waggott and Daliana Coban, Student-at-Law

The recent decision of the Court of Appeal for Ontario in Veolia ES Industrial Services Inc v Brulé¹ deals with the interpretation and enforceability of a non-compete clause in an employment agreement and the scope of an employee's fiduciary duties to a former employer.

The parties entered into a three-year employment agreement on January 1, 2004, which was subject to the employer's right to terminate the employment for cause or without cause upon payment of the compensation to which the employee was entitled until the end of the term. The employee also had the right to terminate the employment agreement by giving the employer 180 days notice.