Non Solicitation Agreement & Clauses Toronto

Non Solicitation Agreement & Clauses

 

Employers can draft contracts that restrict the ability of an employee to contact clients or work in the industry following their departure. These “restrictive covenants” (or non-solicitation clause) are thought to be generally unenforceable but that is not actually the case. A well-drafted non-solicitation clause can prevent an employee from many forms of the competition following their departure.

In situations where you are asked to sign or have signed a non-solicitation or non-solicitation clause, consider the following advice:

First, does the contract forms part of the employment relationship? This is critically important but often overlooked by employees and employers – and sometimes by inexperienced lawyers. As with an employment contract, an individual has to agree to a restrictive covenant before he or she accepts employment.

Second, was any form of duress involved? Was the employee forced to sign the non-solicitation clause or otherwise threatened with losing his or her job? If the contract was not entered into freely and voluntarily, a court will set it aside.

Third, and not least, is the contract even reasonable? This is where most employers get it wrong. Unlike other forms of employment contracts, restrictive covenants have the potential to do significant harm to individuals, so courts have the power to overrule them where the restrictions imposed are unfair. So the clause must only limit an individual’s post-employment activities to the extent that is absolutely necessary. This is often assessed by considering the length of time the restriction applies, the geographic scope of the restriction, and whether it is even necessary.

Fourth – why leave such an important contractual clause to chance? Too many individuals and companies don’t get good advice about these clauses. If you need to draft or are being asked to sign a non-compete or non-solicit call the employment lawyers with exceptional skills and experience at Whitten & Lublin Labour & Employment Lawyers. Our team of experienced lawyers has drafted, interpreted, and challenged countless non-compete and non-solicitation clauses.

Read about non-solicitation and non-compete agreements and clauses near you:

If you’re looking for employment lawyers to assist you with non-solicitation and non-compete agreements and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today!

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