A recent decision of the Ontario Superior Court considered the termination of an employee of Open Text Corporation who had been working for Open Text and its predecessor corporations for 17 years. There was no agreement governing his employment with the first company and it received little updating through two more acquisitions. When he was terminated, he complained that the original contract was void due to the transitions and sued for common law notice...
Maybe it's just me, but in the fall, I tend to roost a little, reflect and get some planning done for next year. Many businesses do the same...and many of you are wrapped up in 2014 Budget Planning cycle right now.
Non-competition and non-solicitation agreements are fairly common in employment contracts, but courts also commonly find them to be unenforceable due to unreasonable or unclear restrictions. When parties negotiate a restrictive covenant in the context of a transfer of a business, however, the rules are different, even where the seller of the business agrees to work for the buyer. The Supreme Court of Canada recently dealt with a case like this.
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