The Working for Workers Act, 2021 (the “WWA”) passed into law on December 2, 2021. One of its more notable aspects was to ban the use of non-compete agreements in Ontario. Non-compete agreements restrict how workers may conduct themselves both during and after employment. Most importantly, they can prevent employees from working at competing businesses for long periods (often for several months or years) after the employee’s job has ended.
In a recent decision rendered in late November of 2018 by the Quebec Superior Court (under appeal), restraint of trade principles normally applicable in employment and sale of a business contexts were applied to restrictive use covenants in real estate (Complexe Commerciale de l'Ile inc . V . Provigo Distribution).
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.