On November 30, the Ontario government passed
the Working for Workers Act, 2021 (the Act),
which includes, among other things, prohibitions on the use of
non-compete obligations in employment agreements and requirements
for most employers in Ontario to develop “disconnecting from
work” policies.
What you need to know
- Non-compete obligations in employment agreements (non-compete
agreements) are now prohibited (and, if applicable, voided) in most
employment contracts entered into after October 25, 2021.
Exceptions are made for non-compete agreements with the
highest-ranking executives of a company and in the context of a
sale of a business.
- Any employer with 25 or more employees is required to develop a
written policy in respect of “disconnecting from
work”.