Your Right to Work.
Many employers use a non-compete clause to intimidate departing employees, even when the clause is legally toothless. In Alberta, the law prioritizes an individual’s right to earn a living over a company’s desire to stifle competition. Our team helps you determine if your non-compete clause is a real legal barrier or simply an unenforceable threat.
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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 are extremely protective of an employee’s mobility. To make a non-compete clause stick, an employer must prove that:
- The company has a legitimate proprietary interest to protect (e.g., trade secrets or unique customer relationships).
- A less restrictive non-solicitation clause would not have been enough to protect that interest.
- The terms are reasonable regarding geography, time, and the scope of activities prohibited.
Non-Compete vs. Non-Solicitation Clauses
It is easy to confuse these two terms, but the legal difference is massive. A non-solicitation clause prevents you from “poaching” clients or coworkers. A non-compete clause prevents you from working in your field entirely. Because a non-compete is much more damaging to your career, Alberta courts rarely enforce them if a non-solicit would have adequately protected the business.
The Three Pillars of a “Reasonable” Clause
If an employer wants to succeed in non-compete clause enforcement in Alberta, the clause must be incredibly specific. Courts will strike down clauses that are “ambiguous” or overly broad. A valid clause typically must be limited in three ways:
- Duration: A restriction of 6–12 months might be seen as reasonable; a 5-year ban is almost never enforceable.
- Geographic Scope: It must be limited to the specific area where the employer does business. A clause banning you from working “anywhere in Canada” for a local Calgary shop will likely be thrown out.
- Scope of Activity: It can’t prevent you from doing any work; it must only restrict activities that directly compete with the employer’s core business.
What a Non-Compete Clause Alberta Sample Looks Like
While every agreement is different, a typical non-compete clause sample found in an employment contract often looks like this:
“Upon termination of employment, the Employee shall not, for a period of 12 months, engage in any business activity that competes directly with the Employer within the City of Edmonton.”
Even a “standard” sample like this is likely unenforceable if the employee was not a high-level executive with access to sensitive proprietary information. If you are a mid-level manager or a specialized technician, this clause may not be legally binding.
Non-Compete Clause Enforcement in Alberta
If you ignore a non-compete, your former employer might threaten a “cease and desist” or an injunction. However, non-compete clause enforcement in Alberta is an uphill battle for companies. Courts hate “blue-penciling” (fixing) a bad clause. If even one word of the restriction is found to be unreasonable or vague, the entire clause is usually struck down as void. The employer can’t “fix” it after the fact.
Consult an Alberta Employment Lawyer
Are you being threatened with a lawsuit, or are you afraid to take a new job because of a contract you signed years ago? The Alberta employment lawyers at Samfiru Tumarkin LLP specialize in reviewing and challenging restrictive covenants. We help workers in Calgary, Edmonton, and throughout Alberta break free from unfair restrictions and move forward in their careers.