Restrictive Covenants Employment Law. Employment Law – Enforceable Restrictive Covenants In order for a restrictive covenant to be enforceable it must be reasonable between the parties and with reference to the public interest There must also be a balance between open competition and the employer’s right to protect its confidential information considering the nature and character of the employment.
An employment contract can also include additional protections For example clauses such as restrictive covenants in favour of the employer include (1) noncompete clauses and (2) nonsolicitation clauses BOOK A CONSULTATION Executives and other highlevel employees are often in possession of important knowledge.
New Law Expands Prohibitions on Restrictive Covenant
Restrictive covenants are employment contract clauses that restrict limit or prevent an employee from doing certain things following the end of their employment Most often these come in the form of a “nonsolicitation” clause and/or a “noncompetition” clause in the employment contract.
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It is legal for employers in Alberta (and across Canada) to protect their interests by requesting that employees sign restrictive covenant clauses If legally binding a court in Alberta can enforce them However depending on their form noncompetition and nonsolicitation clauses may run into difficulties.
Restrictive Covenants Lawyers for Dutton …
Restrictive covenants are clauses in employment contracts that prohibit an employee from doing certain things A noncompetition clause prohibits employees from competing with their employer for a set period of time after the employee leaves the employer A nonsolicitation clause prohibits employees from soliciting or dealing with customers of the.
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A restrictive covenant is a clause that prohibits an employee from competing with the company after termination of the employment usually for a specified period of time and usually in a specified geographical area There is a different type of protection available in the form of a nonsolicitation covenant.