Judge Says Non-Compete Agreements Entered into Before Coming into Force of Section 67.2 of Employment Standards Act, 2000 Still Bind Employees

What is the effect of section 67.2 of the Ontario Employment Standards Act, 2000, which generally prohibits entering into non-compete agreements after October 25, 2021, on non-competition agreements entered into before October 25, 2021?

In Parekh et al v. Schecter et al, 2022 ONSC 302, Justice Mohan D. Sharma of the Ontario Superior Court of Justice held that the Working for Workers Act, 2021, S.O. 2021, c. 35, pursuant to which section 67.2 was enabled, does not apply retrospectivity- meaning that agreements entered into before the law’s coming into force remain in full force and effect.

Agreement “Not to Accept Business” Actually a Non-Competition Agreement: ONCA

When is a non-solicitation provision in an employment contract actually a non-competition agreement? The answer is, when it prevents the employee from “accepting business from” any former corporate accounts or customers.

In a short endorsement, Donaldson Travel Inc. v. Murphy, 2016 ONCA 649, the Court of Appeal for Ontario confirmed an earlier decision of the Honourable Justice David A. Broad of the Superior Court of Justice, dismissing the plaintiff employer’s claims for breach of contract, misappropriation of confidential information, inducing breach of contract and interference with contractual relations against its former employee travel agent and her new travel agency employer.