If you`re a business owner or employer in Ontario, Canada, you may be considering implementing a non-compete agreement as part of your employee contracts. A non-compete agreement, also known as a covenant not to compete, is a legal contract between an employer and employee that prohibits the employee from working for a competitor or starting a competing business for a specified amount of time after leaving the employer.
Non-compete agreements can be an effective tool to protect your business interests and prevent valuable trade secrets and confidential business information from being shared with competitors. However, it`s important to note that non-compete agreements must meet certain legal requirements and restrictions in order to be enforceable in Ontario.
To help ensure that your non-compete agreement is legally sound and meets all necessary requirements, it`s recommended that you work with a lawyer experienced in employment law in Ontario. However, there are templates available that can serve as a starting point for drafting your non-compete agreement.
When searching for a non-compete agreement Ontario template, it`s important to consider the following factors:
1. Specificity: The non-compete agreement should clearly define what activities are prohibited, such as working for a competitor or starting a competing business in a specific geographic area or industry.
2. Duration: The agreement should specify how long the non-compete is in effect, typically no more than two years in Ontario.
3. Consideration: In exchange for the employee agreeing to the non-compete, the employer must provide some form of consideration, such as continued employment or additional compensation.
4. Reasonableness: The agreement must be reasonable in scope and duration, and not overly restrictive on the employee`s ability to earn a living.
While a non-compete agreement can be a useful tool for employers, it`s important to remember that they must be legally sound and reasonable in order to be enforceable. By working with a lawyer and using a reputable non-compete agreement Ontario template as a starting point, you can help protect your business interests while also respecting your employees` rights.