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).
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.
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.