Non-Compete Agreement Lawyers in Calgary
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We help Alberta employees and employers understand, negotiate, and challenge legal terms that limit future employment. Our team provides clear legal advice, strategic solutions, empowering you to make informed decisions.
If you’re looking for guidance on whether a restriction on your future employment can be enforced, we are here to help. Book a consultation, and we will review your situation to provide you with clarity on the path forward.
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It is a specific term, often included in an employment agreement, that restricts an employee’s activities after the job ends. These clauses commonly prevent an employee from working for a competitor after leaving the company.
It can prevent you from taking a new position with a competing business. This is to avoid the risk that you may begin working with a competitor and use information gained by working with your previous employer such as trade secrets, client lists, marketing strategies, etc.
A clause is a specific section within an employment contract that prevents an employee from working for competitors after leaving a job, whereas an agreement is a broader contract that may include additional restrictive clauses, such as non-solicitation (which prevents you from contacting clients after leaving that employer) or confidentiality terms.
Non-solicitation is less restrictive than non-compete. An employee subject to a non-solicitation clause can generally work for a competitor, however they will be prohibited from contacting their former clients once they have started working for a competitor.
The enforceability of clauses that limit future employment varies across Canada and can depend on your industry and nature of the business.
Generally, the law tries to balance the public interest in maintaining freedom of trade with a business’ genuine need to protect its interests. For that reason, any contract restricting commercial activities is difficult to enforce.
To be enforceable, these clauses must be:
- Reasonably necessary to protect the employer’s legitimate business interests
- Clear and unambiguous
- Limited to a reasonable geographic area and length of time
- Reasonable in the activities it stops the employee from doing
For example, the courts will not enforce a non-compete clause if a non-solicitation clause would adequately protect the employer’s interests. In this situation, a non-compete clause will be unenforceable because it is overly restrictive. Consulting with a lawyer in Calgary can help determine whether your specific clause is likely to be upheld under Alberta employment law.
If an employer unlawfully ends your employment, it’s possible they may not be able to restrict your future employment. This includes situations where an employee has been constructively dismissed, meaning the employer has made significant changes to the employment contract without your agreement.
However, if an employer has validly terminated an employee for just cause, it’s more likely the employee will have to follow any restrictive clauses in their employment agreement.
Frequently asked questions about non-compete clauses
If an employer discovers a former employee is actively breaching a restrictive employment clause, they can apply for an injunction (a court order) to stop the employee from continuing the restricted activity.
At Cashion Legal, we work with our clients to review restrictive clauses in employment agreements before they sign, or to review whether these restrictions can be enforced after a job ends.
This depends on the specific wording in your employment agreement and whether those terms can be enforced. Even if you signed an agreement preventing you from starting your own business, it might not be legally valid unless that requirement is truly necessary to protect the employer’s interests. We can review your agreement and advise you on your options and the potential risks involved in starting your own business.
Because a non-compete clause limits a person’s ability to earn a living, the employer must prove that the limitation is truly reasonable and necessary. Here’s what often makes those limitations unenforceable:
- Too Broad: The clause is too wide in its geographic area (e.g., across Canada when the business only operates in Calgary), too long in duration, or prohibits too many types of work.
- Unclear Language: The wording is vague or ambiguous, making it hard to understand exactly what is restricted.
- Not Truly Necessary: The employer can’t show that the clause is genuinely needed to protect a specific business interest, like trade secrets or client lists. Simply preventing competition isn’t enough.
- Less Restrictive Option Exists: If a less restrictive clause, like a non-solicitation clause (which only stops you from contacting former clients), would protect the employer’s interests, a non-compete clause is unlikely to be enforced.
Alberta courts are hesitant to enforce limitations that last too long. Generally, anything over 6 to 12 months is often viewed as too restrictive, especially for general employees. A longer period might be considered for senior roles with access to highly sensitive information. The courts will always look for the shortest time necessary to protect the employer’s legitimate interests.
If an employee is improperly terminated for cause, it generally makes it harder for the employer to enforce any limitations on their future work. The law often sees this kind of dismissal as the employer breaking the employment contract first, which can release the employee from their contractual obligations. However, every situation is different. We highly recommend that you seek legal advice to understand how this applies to your specific situation.
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If you’re facing an employment-related situation, whether you’re an employer or an employee, it’s normal to feel unsure of what to do next. At Cashion Legal, our employment lawyers will work closely with you to:
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- By working with us, you’ll gain peace of mind knowing you have an experienced team on your side.
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