Lior Samfiru on banning non-compete clauses and employee rights

Interview Summary

The Ontario government has introduced legislation that seems to be attempting to reinforce employee rights. The new legislation introduces a ban on non-competition clauses as well as the right to disconnect for employees. What will this mean for employer and employee dynamics?

Lior Samfiru, a Toronto employment lawyer and co-founding Partner at Samfiru Tumarkin LLP joins Alan Carter and Global News to discuss the proposal as well as ongoing employee rights.

Interview Notes

Is this new legislation likely to pass and is it realistic or unlikely to be implemented?

In reality, many employers are not going to be able to provide the right to disconnect as many employees will be intimidated or worried to completely disconnect from work. Policies need to be enforced in order to be successful. It does not seem likely that employees will file complaints to the government in regard to disconnecting.

Are non-compete clauses problematic for employees?

Employers in various industries have tried to implement non-competition clauses to prevent employees from working for competitors. Courts, however, do not like employers to have the ability to limit an employee’s future employment prospects and so rule the clause as non-enforceable. This legislation will help employees and prevent frivolous cases pushed by employers.

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Ontario proposes ban on non-compete clauses

What is the effect of non-compete clauses on labour force?

Some employees have spent many years in a specific job and industry. Non-compete clauses can be disastrous for long-service employees as their prospects for future employment are very restricted. Employment laws regarding non-solicitation are still in place and can function to protect employers.