Non-Compete Clauses No Longer Permitted in Employment Contracts

If you have an employment agreement in place on or before October 21, 2021 that includes a non-compete, it remains completely enforceable. The government also confirmed that exemptions will continue to exist for “C-level” staff (i.e. those who report to the top person in the organization). Non-competes for those senior managers can be enforced. Non-compete clauses for mid-level and front-line staff (even if well drafted) have historically been very challenging to enforce anyway. This change will have negligible (if any) impact in the majority of Ontario workplaces.

If you have any questions about whether this new legislation will impact your employment contracts, please feel free to contact us for assistance.