Employment lawyer, Newstalk 580 CFRA, on Non-compete clauses

Interview Summary

The Ontario government has introduced legislation that ensures a ban on non-competition clauses in employment agreements. This decision seems to have been made in the hopes that employees will be less intimidated and encouraged to find employment in certain sectors.

Alex Lucifero, an Ottawa employment lawyer and Partner at Samfiru Tumarkin LLP joins Kristy Cameron on Newstalk 580 CFRA to discuss this decision and more on employee rights.

Interview Notes

What is a non-compete clause in an employment contract?

A non-competition clause bars employees from competing with their own or former employer, typically for a period of time and in a specific industry. May non-competition clauses are not enforceable.

Are non-compete clauses enforceable?

Most non-competition clauses in agreements are not enforceable as the clauses reach too far and pose too many limitations for employees, such as restrictions on the amount of time an employee can look for employment in certain industries as well as geographic locations. The courts typically only enforce very strict minimal clauses as they do not want more difficulties for employees to find new employment.

WATCH TO LEARN MORE
Employment Law Show – Non-competition and Non-solicitation Clauses

Will this legislation nullify old contracts and previous non-competition clauses?

This legislation has not been introduced yet and will have to be looked at closely but it does seem like employers can transition to competing companies. Employees will still have limitations as to what information they can share with their new employer.

What does the right to disconnect legislation mean for employees?

This legislation also seems very employee-friendly. The right to disconnect legislation sets a firm limit on when an employer can communicate with an employee past regular business hours. Employers will have to implement policies that set out when employees are available to be contacted. Businesses with less than 25 employees will not be able to introduce the right to disconnect policies.