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Why you should update your employment contracts and why January is a good time to do so

Why Employment Contracts are Good

Our readers are probably sick of hearing us go on about employment contracts, but we will never stop recommending them!

An employment contract gives both employers and employees certainty about their entitlements both with respect to compensation and also on exit. 

Whether terms are written down or not, employment relationships will be governed by various terms. In the absence of a contract, courts read in implied terms of employment from the common law. It’s better to get those terms written down so you actually know what they are and don’t have to wait for a judge to tell you! 

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Get our free Employment Contract Checklist

Free Employment Contract ChecklistAre your Employment Contracts Up-to-Date for 2022?  Not sure where to begin?

Get a copy of our FREE Employee Contract Checklist

The checklist outlines affordable DIY contract options for small employers:

  • brainstorm what needs to be included in your contracts
  • cross-reference with any contracts you may already have in place
  • identify areas to add, remove and/or update
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A Proposed Ban On Non-Competes

A Proposed Ban on Non-Competes

On October 25, Ontario Bill 27, Working for Workers Act, 2021 (“the Bill”) passed first reading. This Bill proposes amendments to our key Ontario employment statutes, including the Employment Standards Act, 2000 (the “ESA”) and the Occupational Health and Safety Act. In today’s post, we will review highlights regarding the proposed ban on non-competes and talk about how Ontario businesses can prepare. 

A Ban On Non-Competes

One much-discussed element of the Bill is the proposed ban on non-competition agreements in employment contracts. 

A non-competition agreement restricts – or tries to – an employee’s ability, for a period of time, to work for a competitor after leaving the employer. The restriction is usually somewhere between three months to two years. 

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Non-Solicit Provisions in Employment Contracts – What You Need to Know

Many restrictive convenants in agreements unenforceable

Image by Edar from Pixabay

We get a lot of questions from employers and employees about restrictive covenants. Many employment contracts include a restrictive covenant – a contractual clause that seeks to limit an employee’s ability to solicit the employer’s clients and/or employees and/or to compete for those same clients in the same geographical area once the employee leaves the employer.

Courts generally find restrictive covenants in employment agreements unenforceable, unless they are reasonable between the parties and not adverse to the public interest. Typically, if a restrictive covenant is ambiguous with regards to time, activity or geography, it will not be enforceable. Let’s take a look at non-solicit agreements.

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