Did you know that non-compete clauses are illegal in Ontario?
Even before recent legislation deemed these agreements illegal, non-competes were rarely enforceable in practice. Here are two key reasons why:
🔹 Non-compete agreements restrict individuals from pursuing their chosen industry or career path which is neither desirable nor beneficial. This can be especially discouraging for those just getting started in their careers.
🔹 While the Employment Standards Act provides a minimum standard of up to 8 weeks’ compensation after termination (and perhaps additional statutory severance for employees with more than 5 years of service), non-competes have restriction periods that can be as long as 2 years within broad geographic regions like the Greater Toronto Area, creating a significant imbalance in the terms of the agreement.
Fortunately, fairness has prevailed.
The government’s decision to end non-compete agreements represents a positive step in ensuring a more equitable relationship between employers and employees.
Is there a non-compete clause in your employment agreement? Contact us to get excellent advice.