The Difference Between A Non-Competition Agreement And A Non-Solicitation Agreement

It can be difficult for an employer to enforce a non-competition agreement that prevents workers such as sales people from working for a competitor. In those situations, it’s hard to argue that there is a proprietary interest that the organization has a right to protect. In those situations, a non-solicitation agreement would be preferable because [...]

The Use Of A Non-Competition Agreement As A Condition Of Employment Or When There Is An Employment Termination

An employer can make employment dependent upon a non-competition agreement. If the candidate refuses to sign the agreement, the employer can say, “I’m sorry, your employment is depending upon our agreement to a non-competition clause.” In the case of a termination of employment, legally, an employee isn’t obliged to sign anything restricting their work following [...]

The Situation In Which A Non-Competition Agreement Is Introduced When You Are Already Employed

A situation may arise where you are already employed, but new management or new policies require you to sign a non-competition agreement. You have no legal obligation to sign a non-competition or restrictive covenant once you already have that employment. However, if an employer offers additional consideration, for instance, an extra week of vacation or [...]

The Purpose Of A Non-Competition Agreement

An employer cannot limit an employee’s right to go out and set up a competing business or work for a competing employer following termination of employment. There is no common law prohibition against competition. In order for an employer to limit an employee’s rights following termination of employment to work for other competitive organizations or [...]

How A Non-Competition Agreement Affects An Employee Who Wants To Seek A New Job

The real problem for an individual who secures a new position, working for a competitor, for instance, is what will happen in terms of the next steps his former employer will take. In order to minimize the risk of litigation against the employee it is best to disclose the previous non-competition agreement to the potential [...]

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 [...]

What Is Involved When An Employee Is Terminated For Cause.

Terminating employment with cause is a difficult threshold for the employer to meet. Typically, there are two types of cause. One is the case of serious employee misconduct such as theft or fraud or assaulting a co-worker where the conduct is so serious that the employer is entitled to summarily dismiss the employee without notice. [...]

What Is Dependency In Terms Of Employment Status

In normal circumstances, an employee is defined as someone who has an exclusive, long-term relationship with an employer, and an independent contractor is free to provide services to many different organizations. However, a third type of relationship has developed over time known as the intermediate employee or the intermediate worker. This is a hybrid status [...]

The Advantages And Disadvantages Of Hiring Or Working As An Independent Contractor.

When hiring independent contractors, the employer doesn’t have any obligation to pay benefits to the worker, such as Employment Insurance premiums, Canada Pension Plan, or Workplace Safety and Insurance premiums. The employer is not subject to the restrictions under the Employment Standards Act in terms of notice and/or severance at the time of termination of [...]

The Differences Between An Employee And An Independent Contractor.

According to a 2001 case that was argued in the Supreme Court of Canada, there is no conclusive test which can be universally applied to determine whether a person is an employee or an independent contractor. On the contrary, the courts look at a plethora of different factors when assessing what is the appropriate characterization [...]