Employment & HR

Non-Compete Clause

Also called: Restrictive Covenant, Non-Competition Agreement

A clause restricting where and for how long a departing worker may compete with a former employer.

Varies by jurisdiction. Ontario prohibits employment non-competes in most cases under the Working for Workers Act; other provinces apply common-law reasonableness tests. The rules genuinely differ.

Canadian courts scrutinise non-competes closely and will not enforce one broader than necessary to protect a legitimate business interest. Courts generally will not rewrite an overbroad clause to make it enforceable. Ontario has additionally prohibited non-competes in most employment agreements, with limited exceptions.

Why it matters: an unenforceable non-compete provides no protection at all — which is why non-solicitation and confidentiality terms often do the real work.

Related terms

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A definition can tell you what a term means. It cannot tell you what to do about your matter — that needs a licensed lawyer who knows the facts.

Legal information, not legal advice. Rules differ by province and change over time. A licensed lawyer must review your matter.

Editorial status: Lawkin Editorial — pending independent legal review.

Non-Compete Clause — Canadian legal glossary | Lawkin — Lawkin