Enforcing Non Compete Agreements Ontario

In favour of the defendant, the Tribunal found that the non-competition clause was too broad and was signed when the worker had played a different role than the dismissal and no agreement had been signed, since the defendant was promoted. In addition, the court found that there was no evidence that the defendant had used proprietary information such as price lists, customer databases or other physical objects to compete with the complainant. Recent court decisions in Bc and Ontario offer employers a cross-border lesson on the risks of excessively broad or ambiguous non-competition practices. These cases show the unfortunate consequences that those who do not pay attention can suffer. There are no non-competition clauses in any employment contract in Ontario. In order for you to be subject to a non-competition agreement, the clause must be included in the worker`s employment contract when the employment relationship begins with the employer or if the competition is concluded after the start of the employment, the worker must have received something in return for the non-competition agreement. As stated in this case, the clause must be formulated in a very specific and restrictive manner in order to be deemed applicable. The Court of Justice also agreed that the non-competition clause was not applicable because it had an excessively excessive scope. This clause prevented Dr. Park not only from competing with optometry in his company, but also in any company that issues ”medically prescription or non-prescription optical devices, including glasses or sunglasses.” The Court recognized that such a restriction would prevent Dr. Park from carrying out a wide range of work that has nothing to do with the practice of optometry. As a result, the clause went beyond what was reasonably necessary to adequately protect IRIS` existing commercial ties. DMC helps dentists prepare contractual contracts, non-injunctions and confidentiality agreements, as well as many other labour law services.

Contact us if your dental practice needs help. You should be very careful if you do not compete with the competition clauses and have them checked by an employment law specialist before signing. If an agreement is applicable, it could prevent a worker from returning to a future job in a competing company or from setting up his own competing business. A violation of these clauses may also give rise to actions in which employers seek damages for loss of profits or an injunction against the former employee. Many workers who have already entered into employment contracts with non-compete clauses want to know if there is a way out of their contractual obligation not to compete with a former employer. There are two ways to deal with this problem. A worker may require his or her former employer to submit a waiver to the non-competition clause.