Because they limit an ex-employee`s ability to earn a living, non-competitive agreements must be carefully developed to be legally valid. They cannot be excessively restrictive in terms of duration or geographic scope, or are not applicable. Non-compete clauses attempt to prevent workers from working for a competitor or starting their own business, capable of directly competing with the employer. These clauses may apply to the worker both during their employment and for a certain period after the end of the employment relationship. HMC Lawyers also advises employees who have been asked to sign a competition agreement. We can help you determine the extent of an existing agreement on the inability of competition, determine whether a proposed agreement is too restrictive and, if so, negotiate a level playing field. If you have signed a foreign-to-competition agreement, we can help you determine its scope and determine whether a job offer or business opportunity may violate the terms and conditions. In many cases, maintaining employment is an incentive to motivate workers to sign a competition inability agreement. While you may feel like it`s a valuable incentive to find a job, the dishes may not agree with you. There is case law that the Alberta courts have decided not to apply a non-compete agreement in which the incentive (or value given to the worker) to sign the non-compete agreement was the maintenance of employment. These were cases where it was not clear that the worker would not have had a job if he had not signed the agreement.
Non-compete clauses and non-invitation clauses are very similar, but have very different effects. On the one hand, a non-compete clause prevents a worker from gaining a job with a competitor during and after the job or from setting up his own competing business. In the absence of a non-competition clause, there is no prohibition for a worker to compete with his former employer. On the other hand, a non-formal notice agreement will allow a former employee to work for a competitor, but will prevent him from recruiting clients or employees of his former employer for a specified period of time. A non-formal notice clause is intended to protect employers from the reception of customers by former workers upon their departure. When a former employee has a close relationship with clients, it can give them an unfair advantage over their former employer to recruit those clients. In general, non-competition clauses are much more restrictive than non-invitation clauses. Non-competition clauses are therefore much more difficult to enforce.
There are many situations where companies need contracts to protect themselves. The people who work there are an important aspect of most businesses. The loss of these people causes operational problems, customer relationships and additional costs. To protect your business, here are the following examples of situations where you really need a non-demand agreement. This contractual obligation often comes in the form of a clause in a contract that you have the person sign. Alternatively, the contract also functions as a standalone agreement. If you need it? These agreements protect, for example: HMC Lawyers has a team of qualified and proactive labour law professionals who can respond quickly to violations of competition and confidentiality agreements by independent employees and contractors. We know that the commercial impact of an infringement can be enormous and we will act quickly to protect your rights, including the omission that prevents any use of confidential and proprietary business information.
Our employment team also represents those accused of violating a competition or confidentiality agreement. Where unjustified, these types of claims can have devastating effects on your ability to make a living.