What is the impact of non-competition and non-solicitation provisions on a terminated employee’s notice period?
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.
Employers want to protect their proprietary interest in maintaining client relationships within reason but need to be careful not to overreach when drafting a non-solicitation clause. These clauses are particularly important for sales employees.