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Tag : Restrictive Covenants

Direction from the Ontario Court of Appeal

The Ontario Court of Appeal was busy the last two months providing important direction to the employment bar about the enforceability of non-competition agreements in the staffing environment (see  S. I. Systems Partnership v. Geng and insight on notice and break of service (see Currie v. Nylene Canada Inc., 2021 ONSC 1922 (CanLII), < ).  Both Trial Decisions were upheld..  

Undefined Time Limits are Fatal to Restrictive Covenant

Despite their frequent use restrictive covenants are difficult to enforce. The Canadian economy benefits from open competition free from encumbrances. Recently, the Court of Appeal demonstrated its distaste for these types of clauses by refusing to enforce overly broad restrictive covenants indicating they were unreasonable (see Martin v. ConCreate USL Limited Partnership, 2013 ONCA 72).