Employers and human resource professionals will undoubtedly remember 2022 as another year shaped by the pandemic.
But…there were also legal developments in 2022 that were not related to COVID-19. In this FTR Now, we look at some of the past year’s notable “non-pandemic” cases and legislative developments.
In M & P Drug Mart Inc. v Norton, the Ontario Court of Appeal upheld the decision of an application judge which had found a non-competition clause in an employment agreement to be ambiguous and overly broad, and therefore unenforceable. Background In 2014, Mr. Norton, with the assistance of legal counsel, entered into an employment…
The Ontario Superior Court of Justice has held that the recently enacted provision in the Employment Standards Act, 2000 (ESA) which prohibits non-compete agreements in employment contracts or other agreements does not apply prior to October 25, 2021. By way of background, Ontario’s Working for Workers Act, 2021 (Act) received Royal Assent on December 2,…
In a recent decision regarding the enforceability of a restrictive covenant, Donaldson Travel Inc. v. Murphy, the Ontario Court of Appeal upheld the decision of a motion judge that the restrictive covenant at issue constituted an unenforceable non-compete clause…
The Court of Appeal recently upheld a motion judge’s finding that an employer was required to pay a bonus despite the fact that the dismissed employee was in breach of a non-compete clause. In Wilson v. Northwest Value Partners Inc., the parties entered into a settlement at mediation regarding Wilson’s claim for benefits (inclusive of…
The Ontario Court of Appeal recently found that a restrictive covenant was unreasonable because the respondent, who sought to enforce the covenant, did not have a legitimate or proprietary interest to protect within the territorial scope of the covenant. In MEDIchair LP v. DME Medequip Inc., the Court was asked to decide whether the application judge had erred in finding that the restrictive covenant (provided in the course of a sale of business) was reasonable in scope, having regard to the legitimate or proprietary interest of the respondent.
The Court of Appeal for Ontario has affirmed that if restrictive covenants are to be enforceable, they must be properly drafted. In Eagle Professional Resources Inc. v. MacMullin, the Court upheld the finding of a motion judge that “non-competition” clauses in the employment contracts of employees who left the plaintiff’s employ and joined a competitor…
A recent decision of the Court of Appeal for Ontario reinforces the importance of carefully drafting restrictive covenants and considering what evidence is necessary to succeed on a summary judgment motion. The claim arose when individual employees left their employer to work for a competitor. The former employees were all subject to the same “non-competition”…
The law on restrictive covenants is all about context. Restrictive covenants typically arise in a sale of a business agreement or an employment contract. If you are drafting a restrictive covenant or determining whether a covenant is enforceable, you must be aware of the context because the applicable legal principles vary based on the context….
In a time where employees are unlikely to remain with one employer throughout their working lives, employers often seek to put in place restrictive covenants to limit departing employees from competing with them, soliciting their clients/customers or using confidential information obtained in the course of their employment. The scope of restrictive covenants has recently been…
