Non-Compete Clause Alberta: Are They Enforceable?

A non-compete clause in Alberta is a term in an employment contract that prevents an employee from working for a competitor or starting a rival business after they leave their job.

While these clauses are frequently included in standard agreements, Alberta courts generally view them as a “restraint of trade.” As a result, judges will only enforce them in very specific, limited circumstances.

On This Page:

• 1. Are Non-Compete Clauses Enforceable?
• 2. What is a Non-Solicitation Clause?
• 3. Non-Compete vs. Non-Solicitation
• 4. The Test for “Reasonableness”
• 5. Clause Examples & Samples
• 6. What Happens if You Breach an Agreement?
• 7. Consult an Alberta Lawyer

Are Non-Compete Clauses Enforceable in Alberta?

In general, a non-compete clause in Alberta is considered prima facie (at first glance) unenforceable. Alberta courts place a high priority on employee mobility and your right to earn a living.

To make a non-compete clause stick in a court of law, an employer carries a heavy legal burden to prove that:

• The company has a legitimate proprietary interest that requires protection, such as trade secrets, highly confidential data, or unique, exclusive customer relationships.
• A less restrictive non-solicitation clause would not have been enough to protect that business interest.
• The terms are completely reasonable regarding geographic boundaries, time limits, and the specific scope of activities restricted.

What is a Non-Solicitation Clause in Alberta?

A non-solicitation clause in Alberta is a less restrictive contractual term designed to protect an employer’s business assets without completely stopping a departing employee from working in their chosen industry.

Unlike a non-compete, which bans you from a field entirely, a non-solicit focuses strictly on protecting specific corporate assets. It restricts a former employee from actively pursuing or “poaching” the company’s established clients, active suppliers, or remaining staff members. Because it does not take away your ability to earn an income, Alberta courts are significantly more likely to enforce a non-solicitation clause than a non-compete clause.

Non-Compete vs. Non-Solicitation Clauses: What is the Difference?

It is easy to confuse these terms, but the legal difference under Alberta law is massive. The core difference rests on what is being restricted:

How Do Alberta Courts Determine if a Clause is “Reasonable”?

If an employer wants to succeed in enforcing a restrictive covenant in Alberta, the clause must be drafted with surgical precision. Courts routinely throw out clauses that are vague, ambiguous, or overly broad.

To determine “reasonableness,” a judge evaluates three distinct pillars:

1. Duration: How long does the restriction last? A time limit of 6 to 12 months is typically the maximum a court will consider reasonable; multi-year bans are almost universally struck down.
2. Geographic Scope: Where are you restricted? The boundary must be limited strictly to the location where the employer actively conducts business. Banning a local Calgary employee from working “anywhere in Canada” will almost certainly cause the clause to be thrown out.
3. Scope of Activity: What exactly are you banned from doing? A clause cannot broadly prevent you from doing any form of work. It must be narrowly restricted to activities that directly compete with the employer’s primary, core business functions.

Examples of Non-Compete and Non-Solicitation Samples

To help illustrate the language often found in standard legal contracts, review these distinct samples:

Typical Non-Compete Clause Sample

“Upon the termination of employment for any reason, the Employee shall not, for a period of 12 months, engage in, operate, or work for any business activity that competes directly with the Employer within the municipal boundaries of the City of Edmonton.”

Enforceability Assessment: Even with a specific geographic limit like Edmonton, this sample is highly likely to be ruled unenforceable unless the employee is a top-level, C-suite executive. For mid-level staff, specialized technicians, or those navigating an independent contractor agreement in Alberta, courts will look for a less restrictive alternative.

Typical Non-Solicitation Clause Sample

“For a period of 12 months following the termination of employment, the Employee shall not directly or indirectly solicit, canvas, or entice away any client of the Employer who was a client during the final 12 months of the Employee’s employment.”

Enforceability Assessment: This clause stands a strong chance of being enforced. It does not prevent the worker from taking a job down the street with a rival firm; it simply stops them from actively stripping clients away from their former team.

What Happens if You Breach a Non-Compete or Non-Solicit Agreement?

If you choose to ignore a clause you signed, your former employer may take rapid legal steps. This often begins with their lawyers issuing a formal “cease and desist” letter, demanding you halt your new employment or business activities immediately. If you do not comply, the company can apply to an Alberta court for an injunction to legally freeze your work activities, or file a lawsuit seeking financial damages.

However, pursuing an employee in court is an expensive, uphill battle for companies. Alberta judges refuse to “blue-pencil” (rewrite or fix) an illegal or poorly written clause. If even a single word or constraint in the restriction is found to be vague, unfair, or overreaching, the entire clause is struck down as completely void. The employer can’t fix it or scale it back after the fact.

Consult an Alberta Non-Compete & Non-Solicitation Lawyer

Are you facing legal threats from a former employer, or are you hesitant to accept a new job offer because of a restrictive covenant you signed years ago?

The specialized employment lawyers at Samfiru Tumarkin LLP have extensive experience reviewing, challenging, and defending restrictive employment clauses. We can quickly assess your contract to let you know exactly where you stand, protecting your career mobility and your rights.