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You searched for: "restrictive covenant"

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While there may be damages for employee’s lack of resignation notice, there is no reliable substitute for an enforceable restrictive covenant…

A 2016 decision of the BC Court of Appeal is a good reminder to BC employers of the purpose of an employee’s obligation to provide reasonable notice of resignation and, if breached, what an employer can expect to recover. It also underscores the value of an enforceable restrictive covenant.

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Navigating the minefield: Court of Appeal reiterates distaste for restrictive covenants

Hunter Harrison, the former Chief Executive Officer of Canadian National Railway (CNR), faces a dilemma in dealing with his obligations under a non-compete covenant to his former employer. Harrison is being pursued by CNR competitor Canadian Pacific Railway to assume the position of CEO, but taking that position might violate the non-compete agreement.

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Court of Appeal partially invalidates release of notice entitlements

This blog focuses on the issues surrounding statutory minimums and waiving out, leaving the issue of restrictive covenants raised in the cross appeal for another day.

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Not so fast: Court sets aside employer’s ex parte motion against ex-employee

The recent decision of Planet Paper Box Group Inc., v. McEwan, highlights some of the risks of utilizing an ex parte motion to enforce restrictive covenants against a departing employee.

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Employment contract law changed in 2015. Have you reviewed yours?

Recent court decisions changed how the law applies to employment contracts, most importantly terminations, but also off-duty conduct, consideration and restrictive covenants. Important lessons from the changes are that employers need to review their employment contracts, you can update them or change their terms while complying with the law, and failing to do so can damage your organization’s finances and reputation.

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How to craft an enforceable non-solicitation clause

Generally speaking, a restrictive covenant acts to restrict the activities of a former employee after their employment has ended. They usually come in one of two forms: non-competition clauses and non-solicitation clauses. The law on restrictive covenants is that they are prima facie unenforceable as they are in restraint of trade and therefore against public policy. In order to be enforced, they must be proven by the party that seeks to enforce them to be a reasonable limit on trade.

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Differences between executive and non-executive employment contracts

Executive employment contracts are drafted, unusually, in favor of the employee, rather than the employer as is the case in 99% of all non-executive employment contracts. This is not unreasonable, however.

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Paying the price: Ontario court reminds employers to carefully consider their approach to litigation

It is important for businesses to carefully consider their response to an employee’s wrongful dismissal claim.

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When key employees leave

The departure of a key employee can create uncertainty and destabilize the rest of the office, let alone impact the value of the company if the key employee is particularly high profile. Employers should have a plan in place to provide the right messaging to employees.

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The non-competition clause – Drafting and cautionary notes

A non-competition clause (or non-compete clause) is a passage in an employment contract which purports to prohibit employees from working for another employer or starting their own business which competes with their employer during and after employment.

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Startup employment contracts

Canadian startups and any company for that matter should have an employment contract for all new hires. An employment contract helps both parties understand the employment relationship, protects the start up in the event of the termination of employees and it can also serve as a useful mechanism to attract good employees.

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Non-competition clauses – Language should be clear and unambiguous

Employers should avoid using language that may introduce ambiguity and is broader than necessary to protect the employer’s legitimate interest. Courts will not fix a clause that they find to be ambiguous or overreaching

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Top 5 mistakes employers make in their contracts

Employment contracts are a useful tool for employers. But often, employers make mistakes when creating their contracts. Here are five of the main mistakes to watch out for.

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Contracts and employment agreements

All employment relationships in Ontario are deemed to be contractual, whether or not a written contract is in place between the parties. When there is no written contract, the common law (judge-made law) imports a number of obligations into the contract that will bind the employer and the employee.

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Negotiating BYOD cell phones at termination

You bring the employee into the boardroom, have an awkward 5 minute discussion about restructuring and the elimination of her role, thank her for her years of service, hand her the termination package with the various settlement package details, request that she returns all company property and offer to help her pack her personal items.

Then, she asks about her cell phone.  Can she keep the phone?  Can she keep the phone number? 

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