In Ontario, the courts generally prioritize an individual's right to earn a living over the interests of employers or contracting parties seeking to restrict competition. Consequently, non-compete clauses in independent contractor agreements are viewed skeptically and are subject to strict interpretation.
The British Columbia courts have demonstrated a reluctance to enforce non-compete clauses unless absolutely necessary. They generally favour clauses that are reasonable in scope, duration, and geographic restriction. The courts also examine if the clause is protecting a legitimate proprietary interest of the employer.
In Canada, the enforceability of non-compete agreements is quite strict. Courts are cautious and will only enforce such agreements if they protect a legitimate business interest.
The following are the most common ways to get out of a non-compete agreement: Determine that the terms of the contract do not in fact prevent you from a desired course of action. Recognize when a non-compete contradicts the law. Negotiate a release agreement with the involved parties. Ignore the agreement.
Globally, non-compete agreements vary significantly in terms of enforceability, scope, and legal framework. While they are a common practice in many countries, the extent to which they are recognized and enforced can differ.
As most employers operating in Ontario are already aware, as of October 25, 2021, the Ontario Employment Standard Act, 2000 (the ESA) prohibits employers from entering into post-employment non-competition covenants with employees, except for “executives” (as defined in the ESA) and in certain circumstances related to ...
5 Ways to Defeat a New York Non-Compete Agreement Fired Without Cause. If your employer is not willing to employ you, courts generally will not enforce a non-compete agreement. The Legitimate Business Interests Test. Unclean Hands – Breach of Contract by Employer. The Janitor Rule. There Is No Competition.
Most New York courts will not enforce a non-compete agreement if the restriction is for over a year. For example, courts will generally find this time frame too long if the agreement attempts to restrict an employee for two years or more.
A bill to ban employment non-competes for all but highly compensated individuals is being considered by the New York state legislature. Gov. Hochul vetoed a similar bill in 2023, and the latest proposal appears to respond to the veto memo.