Tag: Restrictive Covenants

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

· 4 min read

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

· 4 min read

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,…

Canadian Corporate Counsel Association (CCCA) Webinar: Restrictive Covenants and Injunctions – The Latest on the Law and Practice

Overview Join our webinar to update yourself on key and cutting-edge issues on to restrictive covenants and injunctions including the enforceability of non-competition, non-solicitation and confidentiality provisions. Our panelists discuss important developments in the enforceability of restrictive covenants, the difference between various injunctions and the corresponding relief and the need to “hit the ground running”…

Setting up Shop in Canada? What U.S. Employers Need to Know About Canadian Employment Law

· 6 min read

While Canada and the United States are alike in many respects, there are a few key differences in employment law that U.S. employers should be aware of if you are considering buying, selling or operating a business in Canada.

Appellate Court Finds Settlement for Payment of Bonus Enforceable Despite Breach of Non-Compete Clause

· 3 min read

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…

Appellate Court Finds Restrictive Covenant Not Enforceable Where Party Had No Legitimate/Proprietary Interest to Protect in Territory

· 3 min read

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.