Fiduciary Duty And How It Relates To A Non-Competition Agreement

Another kind of restriction on post-termination employment occurs if you are a fiduciary.

Employees’ having a fiduciary obligation to their employer’s are only the senior employees within an organization. The law will imply a fiduciary duty when a former employee held a top position within an organization. This obligation doesn’t apply to managerial employees, for instance, only to the most senior employees.

A fiduciary employee can be restricted from taking the customer list or soliciting their former employer’s clients, for instance. A fiduciary obligation prevents an employee from divulging trade secrets. The former employee can’t take advantage of, for instance, maturing business opportunities. And more generally, it prevents the former employee from making unfair use of information acquired during employment. Fiduciary obligations may impede someone from securing employment or an alternate appointment within a different organization, but only for a reasonable time.

Fiduciary obligations do not have to be written within an employment agreement. They’re implied through the common law. Fiduciary duties are usually less restrictive than non-competition. It doesn’t mean that a person can’t work for competitor, it’s just that he or she has to be careful about the information that is used in the new job.

If you, or someone you care about, is dealing with employment law issues in the Ottawa, Ontario Region, contact Law Office of Melanie-reist.

This article is taken from an interview with Melanie-reist , Employment Lawyer at Law Office of Melanie-reist , an Ottawa, Ontario Employment Law Firm. Note that laws vary from province to province. Please consult with a lawyer in your own area to be sure of the laws and specific issues in your own jurisdiction.