These types of agreements and restrictions are sought by employers, at the outset of the employment relationship, seeking to prevent their executives and employees from competing against them or contacting any customers or existing employees in the event they leave employment in the future.

We have vast experience representing executives and employees who are being threatened or sued based on these agreements.

The law in this area tends to favour the right of executives and employees to earn a living after their departure from their present employment arrangement-either through seeking employment with a competitor or starting up a competing business. The courts are mindful of restricting an employee’s ability to earn a living and closely scrutinize any agreements that seek to impact on this very important right. More recently the Ontario Court of Appeal and the Supreme Court of Canada have issued strong decisions supporting employee rights in this area. It is absolutely critical to review the facts and circumstances surrounding such agreements and how, when and where they were entered into and what if anything was given in return for such future restrictions. The wording of the agreement is equally of significance and especially so if the agreement is at law ambiguous in any way. These agreements are also reviewed to determine the reasonableness of the scope of its terms, the duration and any geographic limits. Each situation will turn on its own unique facts and wording.

These types of agreements are usually advanced quickly in the courts by employers usually through an injunction-so time is usually very much of the essence.

Whereever possible legal advice should be sought in advance of departing so you fully understand your rights and can be prepared to defend your case in court on short notice.