A non-compete clause is one of the most restrictive provisions that can appear in an employment contract. It attempts to prevent employees from working for competitors or starting a competing business after leaving their job.
In British Columbia, non-compete clauses are not automatically illegal. However, courts are often reluctant to enforce them unless the restriction is clearly justified and carefully written.
Because these clauses can significantly limit a person’s ability to earn a living, BC courts examine them closely. If a restriction goes further than necessary to protect an employer’s legitimate business interests, it may be unenforceable.
What Is a Non-Compete Clause?
A non-compete clause in BC is a contractual restriction that attempts to prevent a former employee from competing with their employer after leaving the company.
These clauses may attempt to restrict a former employee from:
- Work for a competing company
- Start a competing business
- Providing similar services to former clients
- Operating within a defined geographic area
Because these restrictions can significantly limit employment opportunities, courts typically treat non-compete clauses with caution.
Are Non-Compete Clauses Enforceable in British Columbia?
Sometimes — but only if they are reasonable and clearly drafted.
BC courts carefully examine restrictive clauses to determine whether they are justified. In most cases, a non-compete clause must be:
- Limited in time
- Limited in geographic scope
- Clearly written and unambiguous
- Necessary to protect legitimate business interests
If a clause is overly broad or unclear, courts may refuse to enforce it.
Why Non-Compete Clauses Often Fail in BC
Courts in British Columbia generally favour restrictions that limit specific conduct, rather than preventing someone from working altogether.
For example, employers may be able to protect their interests through:
- Non-solicitation clauses
- Confidentiality agreements
- Protection of trade secrets
How Long Can a Non-Compete Clause Last in BC?
The duration of the restriction is one of the most important factors courts consider.
Common durations in employment contracts include:
- 6 months
- 12 months
- 24 months
However, longer restrictions may be considered unreasonable depending on the nature of the job and the industry involved.
Non-Compete vs Non-Solicitation Clauses in BC
Employers sometimes include both non-compete clauses and non-solicitation clauses in employment contracts. These restrictions serve different purposes.
Non-Compete Clauses
Restrict a former employee from:
- Working for a competitor
- Starting a competing business
- Operating within a specific geographic area
Non-Solicitation Clause
Restrict a former employee from:
- Contacting former clients or customers
- Recruiting coworkers
- Redirecting business opportunities
Learn more about these restrictions in our guide to non-solicitation clauses in Canada.
What If Your Employer Tries to Enforce a Non-Compete Clause?
If an employer claims a non-compete clause prevents you from accepting a new job, you should not assume the restriction is valid.
In many situations:
- The clause may be too broad
- The restriction may not be necessary to protect legitimate interests
- The clause may be unclear or poorly drafted
Speak With an Employment Lawyer
Non-compete clauses can create uncertainty when employees change jobs or accept new opportunities.
The employment lawyers in BC at Samfiru Tumarkin LLP have helped tens of thousands of employees across Canada understand their workplace rights.