Tag: noncompetition clauses

Surprising pro-employer decisions on post-employment restrictive covenants

by Kyla Stott-Jess and Stefan Mirkovic Employers often place great faith in restrictive covenants to protect their assets when hiring key employees. In Canada however, noncompetition clauses have generally been very difficult to enforce outside of the context of a sale of business. Nonsolicitation clauses have also been carefully scrutinized by judges even though they […]

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High court rules on noncompete, nonsolicitation clauses in business sale

By Isabelle East-Richard A recent Supreme Court of Canada decision arising out of Québec will have broad ramifications across Canada. In Payette v. Guay Inc. (2013 SCC 45 (September 12, 2013)), the Supreme Court of Canada settled the debate over whether the employment contract provisions of the Civil Code of Québec also apply to noncompete […]

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The irony of irreparable harm

By Bruce Grist Conventional wisdom suggests that because a nonsolicitation clause is more likely than a noncompete clause to be enforced by a Canadian court, why bother including a noncompete clause in an employment agreement? The British Columbia Court of Appeal’s decision in Edward Jones v. Voldeng suggests that there is still value in including […]

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Post-contractual duty to act faithfully: a protection limited to a (too) reasonable period

by Isabelle East-Richard Throughout Canada, whether under article 2088 of the Civil Code of Québec in Quebec or the common law elsewhere, employees have a duty to act faithfully and honestly toward their employer once the employment relationship has ended. That is the case even when there is no noncompetition clause in an employment contract. […]

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Canadian Employers Need to be Careful with Nonsolicitation Clauses

By Clayton Jones and Derek Knoechel The common wisdom is that Canadian courts are much more willing to enforce nonsolicitation clauses in employment contracts than noncompetition clauses. While this may often be the case, nonsolicitation clauses will still be closely scrutinized by the courts. Two recent cases from British Columbia emphasize the danger for employers […]

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