NON-COMPETE AND NON-SOLICITATION AGREEMENTS LAWYER

STACEY REGINALD BALL

82 SCOLLARD STREET TORONTO, ON, M5R 1G2

Call: (416) 921 7997 Ext.225     Email: srball@82scollard.com

WHAT YOU SHOULD KNOW ABOUT NON-SOLICITATION AND NON-COMPETITION CLAUSES

Employment contracts will often include terms that are in restraint of trade. They are incorporated in order to protect the employer’s interests once their employees leave for job in other companies. This article discusses such clauses in the employment context with their usage and enforceability.

Restrictive Covenants

The Enforcibility Of Restrictive Covenants

In general, the courts will be reluctant to enforce clauses that will restrict an individuals’ ability to earn a living or pursue a job of their choice. As such, the starting point for restrictive covenants is that they are unenforceable unless the employer can demonstrate why the covenant should be enforced.

For a restrictive covenant to be deemed enforceable, the courts usually require that it be as minimally restrictive as necessary. As such, non-competition clauses are hard to enforce as a non-solicitation clause will often be considered sufficient. Courts will also not fix a restrictive covenant. If it is too broad, unreasonable or otherwise flawed, it will be found unenforceable-the courts will not fix the clause to make it enforceable.

Restrictive Covenants

Non-competition and non-solicitation clauses are known as “restrictive covenants.” Restrictive covenants are contractual clauses in an employment agreement that attempt to limit a former employee’s ability to solicit the employer’s clients and/or start their own business that competes with their employer.

1) Non-Competition Clauses

​a) What Are They?

Non-competition clauses prevent a departing employee from competing with their former employer by either starting their own business or working for a competitor business.

b) Enforcibility

Non-competition clauses that are limited in duration and in geographic scope are more likely to be enforced as opposed to a broad clause that lasts for many years. It should be noted that a non-competition clause is less likely to be upheld where a non-solicitation clause can adequately protect the employer’s proprietary interests. In exceptional cases, the courts would uphold a non-competition clause against a departing employee when a simple non-solicitation does not suffice. (Elsley v J.G. Collins Insurance Agencies Ltd., 1978 2 SCR 916)

Non-Competition Clauses

Non-Solicitation Clauses

2) Non-Solicitation Clauses

a) What Are They?

Non-solicitation agreements aim to prevent departing employees from poaching their former customers, clients, suppliers or coworkers. Without a proper non-solicitation clause, it would be much easier for employees to poach former clients, suppliers or fellow employees once their employment with the company has been terminated.

b) Enforcibility

The courts will consider several factors in determining whether a non-solicitation clause is enforceable. These factors include the length of the restriction, the geographic scope, whether the covenant is clear, certain and not vague, and the general reasonableness with respect to the public interest.

If the non-solicitation clause fails to set out the time period for which the clause applies, or tries to set out an unreasonable time period (e.g., a 10-year restriction on solicitation for an employee of 3 years), then it will be found to be unreasonable and therefore unenforceable.  Similarly, a clause that purports to cover the entirety of Canada will be found to be too broad geographically and will be unenforceable, when the former employee only worked and interacted with clients located in Toronto or Ontario.

Furthermore, a non-solicitation clause may actually be a “non-competition clause in disguise” if it attempts to limit activities that are not “solicitation.”  For example, if the clause attempts to prevent a former employee from doing work for a competitor, or a client of former employer when the client approaches this employee out of their own free will, then the clause is actually attempting to prevent this former employee from competing rather than simply trying to prevent them from soliciting.

Therefore, employers should be aware that a great deal of skill is required in drafting an enforceable restrictive covenant, while employees should carefully review an employment agreement with non-competition and/or non-solicitation clauses and seek legal advice before signing such a document. If you have any questions regarding non-competition and non-solicitation clauses, top Toronto employment lawyer Stacey Ball can help you explore your legal options. Please contact our office at 416-921-7997 extension 227.

CONSULTATIONS

Canadian Employment Law

Canadian Employment Law

Mr. Ball is the author of the authoritative and definitive text Canadian Employment Law, published by Canada Law Book (a division of Thomson Reuters). The text is used and cited by lawyers, law schools and judges across Canada.

To order Mr. Ball’s Canadian Employment Law, please visit the Carswell Store by clicking here or on the button below.

CLIENT REVIEWS

Google Reviews

Beijia Zhang
Beijia Zhang
21:41 09 Apr 23
Stacy helped me with my case with my previous employer. I have to say that Stacy is the best lawyer I ever met. He worked incredibly hard on my case and helped me fight over the wrongful dismissal, eventually he solved my issue and we settled at a very good deal. I was super impressed by his professionalism and integrity, plus he has passion towards what he is doing. Stacy is the best of all! One of a kind!!!!!!!!
R Cooray
R Cooray
19:11 04 May 23
Stacey and his amazing team did a fantastic job with my case. Their professionalism and many years of experience helped me to settle my case. Stacey has written some of Canadian employment law. I would highly recommend to anyone to seek advise before signing any documents.
Marion Gordon
Marion Gordon
10:27 13 Jul 23
Stacey Ball fought hard in my wrongful dismissal case and we came out ahead. I am very happy with him and his team. I strongly recommend him if you have a wrongful dismissal case.
Wilma Carlson
Wilma Carlson
17:43 07 Jul 23
Stacey's professionalism and strong communication skills helped me feel informed and reassured throughout the entire process. Thanks to his tenacity and unwavering support, I achieved a successful outcome that I am truly grateful for.
Sharon Smerek
Sharon Smerek
18:28 14 Jun 23
Stacey R. Ball has bar admittance in British Columbia, Alberta, and Ontario. Will give excellent advice, and if you have a case , he will proceed on your behalf . Stacey Ball is known as the best employment lawyer across Canada.
PATRYK Szpindler
PATRYK Szpindler
11:22 03 Oct 23
Working with Stacey Ball was the best decision for my employment-related case. He was responsive to my questions, addressed all my concerns promptly and, most importantly, secured a fair resolution. Thanks again!!
Pilar M
Pilar M
11:19 03 Oct 23
Stacey R. Ball and his team represented me in my wrongful dismissal case. They exhibited a solid grasp of employment law and guided me through the legal proceedings. They were very diligent, especially in updating me on the status of my case. I really appreciate what they've done for me.
Hanan Wahib
Hanan Wahib
15:16 22 Jan 24
I am very grateful for the outstanding job that Stacy Ball and his team have done.. I want to thank you Stacy for your exceptional professional expertise and unwavering support throughout my case. Your dedication, knowledge, and genuine compassion made a significant impact on the positive outcome.I am grateful to have encountered you both as a lawyer and as a person of great humanity.
Lisa Joslin
Lisa Joslin
20:07 30 Jan 24
I had the pleasure of working with Stacey Ball and his assistants. From the start to the finish, my experience with them was nothing short of outstanding.Stacey possesses an in-depth knowledge of employment laws and regulations. His expertise was evident as he navigated through my case. He took the time to understand my situation, ensuring that I felt heard, understood, and supported throughout the entire process.Communication was clear, prompt, and thorough, making a stressful situation more manageable.I highly recommend Stacey R Ball for anyone seeking expert employment law guidance. Overall, my experience was exceptional, and I am so very grateful for the positive resolution.
sean hogue
sean hogue
22:05 30 Jan 24
I recently used Stacey to resolve an employment issue and was very pleased with the result. This is the second time I've engaged his services over the years. Stacey is the consummate professional, extremely knowledgeable and I'm thankful for his skillful representation. I have also recommended Stacey to others who have experienced the same results.
Melanie Kirkpatrick
Melanie Kirkpatrick
17:34 04 Apr 24
I would highly recommend Stacey Ball. If you're seeking an employment lawyer who is not only highly skilled but also genuinely cares about their clients, look no further than Stacey Ball. He is simply the best in the business!I must also applaud his outstanding assistant, Amy. With Amy's proactive communication, together, they form an unbeatable team!
Ritesh Jadhav
Ritesh Jadhav
13:40 16 Aug 24
Losing a job unfairly is a stressful experience, but Mr. Stacey Ball provided not only legal support but also emotional reassurance. I'd highly recommend him to anyone facing a similar situation. He truly goes above and beyond for his clients!
Nicholas Banks
Nicholas Banks
17:31 18 Aug 24
We engaged this lawyer to assist our company with a complex employment dispute. Stacey Ball took the time to understand our company’s policies, procedures, and the specifics of the case. He kept the process moving efficiently and allowed us to make informed decisions without unnecessary delays. The outcome of the case was also favourable, thanks to Mr. Ball’s hard work and dedication.
Jennifer Patricia
Jennifer Patricia
19:51 01 Oct 24
Stacey Ball and his team provide outstanding representation for wrongfully dismissed employees. From the initial consultation, Mr. Ball will demonstrate his deep understanding of employment law, and he will share straightforward, realistic expectations so clients can make informed decisions with confidence. His team is always responsive, and they provide clear guidance throughout the process to help clients feel informed and supported during a stressful time.Mr. Ball's fees are reasonable, enabling clients to receive equitable settlements from former employers, and to move forward with their lives and careers. This firm is highly recommended for anyone facing employment issues!
Josna
Josna
07:07 24 Oct 24
It was quite distressing to face an unfair firing, but Mr. Stacey Ball helped me when I needed it. I heartily suggest him to anyone facing a comparable circumstance. For his clientele, he really goes above and beyond!
Puspa Latha
Puspa Latha
07:06 24 Oct 24
Stacey R. Ball handled my issue quickly and with clarity, giving me straightforward advice. His knowledge was priceless.
Rana shoaib Shoaib l
Rana shoaib Shoaib l
09:28 31 Oct 24
Experiencing an unjust dismissal was extremely upsetting, but Mr. Stacey Ball provided me with support when I needed it. To anyone in a similar situation, I highly recommend him. He goes above and above for his customers!
Sarah Noor
Sarah Noor
09:43 02 Nov 24
I'm very appreciative of Stacey for helping me get through a challenging job circumstance; she truly made it feel doable.
Suny Sajid
Suny Sajid
03:44 08 Dec 24
I went to Stacey Ball after being fired unfairly. His correspondence was consistently professional and timely, and I felt comforted to have such a skilled attorney on my side. Strongly advised if you're having trouble finding work in Toronto!
Muhammad zeshan
Muhammad zeshan
07:05 05 Nov 24
It was pleasant working with Mr. Ball on my out-of-line denial claim. In the end, I received a settlement that was more notable than I had anticipated.
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