By Bruce Grist

Conventional wisdom suggests that because a nonsolicitation clause is more likely than a noncompete clause to be enforced by a Canadian court, why bother including a noncompete clause in an employment agreement? The British Columbia Court of Appeal’s decision in Edward Jones v. Voldeng suggests that there is still value in including a noncompete clause. Why? It may be easier to demonstrate irreparable harm, one of the requirements to obtain an injunction, when a former employee has breached a noncompete clause. read more…

by Isabelle East-Richard

Throughout Canada, whether under article 2088 of the Civil Code of Québec in Quebec or the common law elsewhere, employees have a duty to act faithfully and honestly toward their employer once the employment relationship has ended. That is the case even when there is no noncompetition clause in an employment contract.

Although some have thought that this duty to act faithfully and honestly may give employers protection against competition from their former employees, that protection may be limited. Indeed, in 9129-3845 Québec inc., the Quebec Court of Appeal recently said that it was reasonable for such a duty to last only three months following the termination of employment.

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By Clayton Jones and Derek Knoechel

The common wisdom is that Canadian courts are much more willing to enforce nonsolicitation clauses in employment contracts than noncompetition clauses. While this may often be the case, nonsolicitation clauses will still be closely scrutinized by the courts.

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