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.
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.