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ARTICLE · 07 JUNE 2018

Restrictive Covenants: When Will Non-Competes And Non-Solicits In Employment Agreements Be Enforceable?

Many employment contracts include an agreement that, for some period of time following their employment, the employee will not work for a competitor ...

CanadaEmployment and HR

Many employment contracts include an agreement that, for some period of time following their employment, the employee will not work for a competitor or solicit business from the company's customers and/or suppliers. These belong to a category of clauses called "restrictive covenants", so named because they attempt to restrict an employee's post-employment conduct. They are also sometimes referred to as "non-competes" or "non-solicits".

These clauses can cause headaches at the end of an employment relationship, either for the employee or the employer, depending on how well the clause was drafted.

For employees, a restrictive covenant could interfere with their plans for what's next in their career when leaving their job and expose them to a lawsuit by their former employer. Many employees forget their employment agreement even included a restrictive covenant. Other than those making a drastic career move, many employees leaving a job (voluntarily or after

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