British Columbia Non-Compete Agreements

For more information on the non-competition rules, please contact our Human Resources Advisors at 1 (833) 247-3652. In Ceridian Dayforce Corporation v. Daniel Wright 2017 ONSC 6763 (« Ceridian »), the Ontario Superior Court adopted reasoning very similar to that of the BC Court of Appeal when it held that a non-compete clause was not applicable because it was too broad and ambiguous. In the Ceridian Directive, the employer attempted to impose a non-compete clause against a software developer who resigned. The non-competition clause limited the worker to « provide, directly or indirectly, services in any capacity, for a maximum period of 12 months. to any natural or legal person who offers products or services or who operates in an undertaking which is in competition with the activities of the undertaking, one of its subsidiaries or related undertakings at the time of its termination… ». Restrictive agreements, such as competition bans and debauchery bans, have become increasingly common among Canadian companies in recent years, as reported by The Globe and Mail. In particular, competition bans are now an important part of many employment contracts in British Columbia and across the country. However, employers should be aware that competition bans can be challenged in court. To increase the chances that such a clause will be legally applicable, it is necessary to find the right balance between the rights of employers and workers.

Employers who are concerned about the protection of their customer relationships and proprietary information should go to staff, it is recommended to have healthy restrictive contractual clauses. While they are usually included in the employment contract upon hiring, employers can also take steps to incentivize existing employees to enter into enforceable agreements. There`s something about the start of a new year that makes our phones ring with non-compete issues. Ball-dropping champagne and New Year`s champagne make many people think about changes at work. Whether you`re an employer or an employee, if you`re thinking about ending an employment relationship to move on to something new, it prompts you to dust off employment contracts to see what happens. Here are some of the most common myths about competition bans. The Court held that the « enhanced control » test, used to assess the adequacy of a restrictive agreement, is not limited to employment contracts and may apply to independent subcontracting agreements. It applies to all agreements in which there is an imbalance of power between the parties. Only agreements that involve payment for goods, which are often concluded when selling a business, are excluded from the review. . . .

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