Non-Compete Agreement Lawyers in Calgary
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We help Alberta employees and employers understand, negotiate, and challenge non-compete agreements. Our team provides clear legal advice, strategic solutions, and peace of mind so you can make informed decisions.
If you’re looking for guidance on the enforceability of a non-compete agreement, we are here to help. Book a consultation, and we will review your situation to provide you with clarity on the path forward.
common non-compete clause Questions
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A non-compete clause falls under the broader term “Restrictive Covenants”, which encompass non-competition and non-solicitation clauses often included in an employment agreement. These clauses are typically triggered against an employee when the employment relationship ends and require the employee to continue the duty of good faith and loyalty, beyond the term of the employment relationship.
Non-compete clauses prohibit former employees from taking a new position with a competing business. This is to avoid the risk that an employee may begin working with a competitor and use an advantage gained by working with their previous employer such as trade secrets, client lists, marketing strategies, etc.
A non-compete clause is a specific section in an employment contract that prevents an employee from working for competitors after leaving a job. A non-compete agreement is a broader contract that may include multiple restrictive clauses, such as non-solicitation or confidentiality agreements.
Non-solicitation clauses are less restrictive than non-compete clauses. 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 restrictive covenants varies across Canada and can depend on the industry and nature of the business.
Generally, the law attempts to balance the public interest in maintaining freedom of trade against reasonable limits on trade to protect private business interests. For that reason, any contract restricting commercial activity, including a non-compete or non-solicitation clause, is difficult to enforce.
To be enforceable, non-compete and non-solicitation clauses must be:
- Reasonably necessary to protect the employer’s legitimate business interests
- Clear and unambiguous
- Limited to a reasonable geographic scope and duration of time
- Reasonable in the activities it prohibits the employee from engaging in
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.
If an employer unlawfully terminates an employment relationship, it’s possible the employer may not be able to enforce a non-compete or non-solicitation clause. This includes a case where an employee has been constructively dismissed, meaning the employer has unilaterally changed the fundamentals of the employment contract.
In the case where an employer has validly terminated an employee for just cause, it’s more likely the employee will have to follow any restrictive clauses contained in the employment agreement.
Frequently asked questions about non-compete clauses
If an employer discovers a former employee is actively breaching non-compete or non-solicitation, they can apply for an injunction to prohibit the employee from engaging in the restricted activity.
At Cashion Legal, we work with our clients to review restrictive clauses in employment agreements before they sign, or to review the enforceability of these clauses after termination
Having your employment contract reviewed is an important and responsible step to protect your rights and interests as an employee. An employment contract review will allow you to:
- Gain a clear understanding of your rights, obligations, and entitlements as an employee. This includes information about your salary, benefits, working hours, leave policies, termination procedures, and more.
- Identify unfair or unfavourable terms, including restrictive covenants, non-compete clauses, confidentiality agreements, or ambiguous terms.
- Ensure that the terms and conditions stated in the contract align with the applicable employment laws in your jurisdiction.
- Negotiate better terms, including improved job security, enhanced benefits, increased compensation, or other favourable changes.
- Ensure the agreement is clear, unambiguous, and accurately reflects the agreed-upon terms to prevent potential disputes.
Your employment contract should be reviewed before it is signed, otherwise you may not be able to request any future changes to your contract.
Employment contract reviews can generally be completed within a week, subject to our availability.
The cost of an employment contract review depends on the employment contract itself. We can provide a quote for your employment contract review after you have provided our office with a copy of your employment contract.
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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:
- Provide clear, actionable guidance tailored to your situation
- Offer strategic solutions to help you move forward with confidence
- Deliver efficient, focused representation as your employment law partner
- By working with us, you’ll gain peace of mind knowing you have an experienced team on your side.
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