Beyond COVID-19: 2022 Year in Review – Cases and Legislation of Note

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.

Appellate Court Finds Non-Competition Clause in Employment Agreement to be Unenforceable

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…

Court Finds ESA Prohibition on Non-Compete Agreements Does Not Apply to Agreements Entered into before October 25, 2021

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,…

The Latest Word on Restrictive Covenants from the Supreme Court of Canada

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….

Important Direction on Restrictive Covenants from the Court of Appeal for Ontario

Restrictive covenants in an employment context are intended to control an individual’s competition and conduct in relation to her employer’s business after the employment relationship ends. These covenants will only be upheld by the courts if they are reasonable as between the parties and reasonable in light of the broader public interest in discouraging restraints…