Non-Compete Clause in an Employment Contract (Alberta)

A non-compete clause restricts where and how an employee can work after leaving a job.

In Alberta, non-compete clauses are presumptively unenforceable in most employment relationships. While employers still include them in employment contracts, courts apply a very high standard — and many non-compete clauses fail.

What Is a Non-Compete Clause?

A non-compete clause attempts to prevent a former employee from:

• Working for a competing business
• Starting a competing company
• Working in the same industry or geographic area

These restrictions apply after employment ends, sometimes for months or even years.

Are Non-Compete Clauses Enforceable in Alberta?

Rarely — and only in exceptional circumstances.

In Alberta, a non-compete clause is enforceable only if it is:

• Clearly and precisely drafted
• Limited in time, geographic area, and scope of activity
• Truly necessary to protect a legitimate business interest

Why Most Non-Compete Clauses Fail in Alberta

Non-compete clauses often fail because they:

• Are too broad or vague
• Cover an excessive geographic area
• Apply for an unreasonable length of time
• Restrict competition instead of protecting specific business interests

Non-Compete vs. Non-Solicitation Clauses

These two clauses are often confused, but they are treated very differently under Alberta law.

Non-Compete Clauses:

• Restrict where you can work
• Are rarely enforceable
• Face a very high legal threshold

Non-Solicitation Clauses:

• Restrict contacting specific clients or coworkers
• Are more likely to be enforceable
• Still must be reasonable and clear

Non-Compete Agreements in Alberta

Employers may ask employees to sign non-compete agreements:

• When starting a new job
• During promotions or role changes
• As part of an updated employment contract

Should You Agree to a Non-Compete Clause?

You should speak with an employment lawyer before agreeing to a non-compete clause if:

• You work in a specialized or competitive field
• Your job relies on industry experience or contacts
• The clause restricts future employment opportunities
• The terms are unclear or broadly written

Get Legal Advice Before You Sign or Enforce a Non-Compete Clause

Non-compete clauses are often included as a deterrent, even when they may not hold up in court.

An employment contract lawyer in Alberta at Samfiru Tumarkin LLP can review a non-compete clause and explain whether it is likely enforceable under Alberta law.