In Ontario, the Working for Workers Act, 2021 provides that no
employer shall enter into an employment contract or other agreement
with an employee that is, or that includes, a non-compete
agreement, subject to certain narrow exceptions. A
"non-compete agreement" is defined as "an agreement,
or any part of an agreement, between an employer and an employee
that prohibits the employee from engaging in any business, work,
occupation, profession, project or other activity that is in
competition with the employer's business after the employment
relationship between the employee and the employer ends". Any
agreement which contravenes this statutory prohibition is void.
For agreements entered into prior to this legislation, Ontario
courts have taken a cautious approach to enforcing restrictive
covenants on public policy grounds. Terms of a contract that
restrain a vendor of a business from competing with the purchaser
or an employee upon leaving employment from competing
