Restricting Employee Competition With Former Employers

Non-competition and non-solicitation clauses in employment contracts (collectively referred to as "restrictive covenants") can be a source of frustration and uncertainty for employers and employees alike.

As a general rule, courts in Canada are reluctant to enforce employment contract clauses restricting the employee's ability to compete with the employer. The overarching reason for this is the fundamental principle that everyone has the right to earn a living. Depending on an employee's role and the nature of the restriction in question, there are cases in which an employment contract clause which restricts the employee's ability to compete with the employer after the two part ways may be upheld.