Non-Compete Clause in an Employment Contract (BC)

A non-compete clause restricts where, how, or for whom an employee can work after leaving a job.

Non-compete clauses are rarely enforceable in BC employment contracts. While employers continue to include them, BC courts apply a very high legal standard, and most non-competes do not survive scrutiny.

This page explains how non-compete clauses work in British Columbia, when courts may enforce them, and why most 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, often for months or years.

Are Non-Compete Clauses Enforceable in BC?

In most cases, no.

BC courts enforce non-compete clauses only in exceptional circumstances. To be enforceable, a non-compete clause must be:

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

Why Do They Often Fail?

Non-compete clauses commonly fail because they:

• Are overly broad or vague
• Cover too large a geographic area
• Apply for an unreasonable length of time
• Attempt to restrict competition instead of protecting specific interests

Non-Compete vs. Non-Solicitation Clauses in BC

Employers often confuse these clauses, but BC law treats them very differently.

Non-Compete Clauses:

• Restrict where or whether someone can work
• Are rarely enforceabl
• Face the highest level of court scrutiny

Non-Solicitation Clauses:

• Restrict contact with specific clients or coworker
• Are more likely to be enforceable
• Still require clear and reasonable limits

Non-Compete Agreements in BC

Employers may ask employees to sign non-compete agreements:

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

Should You Agree to a Non-Compete Clause?

You should get legal advice before agreeing to a non-compete clause if:

• Your industry is competitive or specialized
• The clause limits future job opportunities
• The restrictions are broad or unclear
• You may change employers in the near future

What If an Employer Tries to Enforce a Non-Compete Clause?

If an employer threatens to enforce a non-compete clause:

• Do not assume the clause is valid
• Do not resign or turn down work without advice
• Do not rely solely on what your employer says

Legal advice can clarify whether the clause is enforceable and how it affects your ability to work.

Get Legal Advice Before You Sign

Non-compete clauses remain common in BC employment contracfts — even though most do not hold up in court.

Before signing a contract or responding to enforcement threats, get clear legal advice.

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