Did You Sign a Non-Compete Clause?

The purpose of severance has been described by the Courts as a means to help tide over dismissed employees until a time they can find reasonable, comparable re-employment. Accordingly, one of the factors that may have a direct impact on any calculation of severance amounts is what (if any) restrictive covenants apply to the employee post-dismissal.

Take this common example: a dismissed employee is restricted for a period of one (1) year post-termination from working in a similar role for a competing employer. This employee’s job prospects will be necessarily impacted by the non-competition clause as their most likely avenues to find reasonable, comparable re-employment are blocked for the foreseeable future.

In such cases, the Courts typically increase the amount of severance that a dismissed employee is owed to help compensate for the extra time that will be needed to find new work. The exact amount of extra severance will dependant on a variety of different factors, such as:

  • whether the former employer has indicated that the restrictive covenants will be waived;

  • the degree of interference the restrictive covenants will have on the dismissed employee’s job prospects; and

  • the length of time the restrictive covenants will be in effect post-dismissal.

If there is a restrictive covenant that will apply to you, it is best to speak with an employment lawyer to better understand how such contractual provisions may impact any related severance entitlements.

Workplace Legal Services for Employees

  • Severance Packages

    If you do not have a written employment contract, you are entitled to Common Law Reasonable Notice. If you do have a written employment contract, depending on its wording, your entitlement to severance will fall into one of 3 camps.

  • Wrongful Dismissal

    Wrongful dismissal cases can vary greatly and damages incurred for wrongful dismissal can, as well. Understanding the extent of your rights and entitlement can be difficult. It is always wise to consult a wrongful dismissal lawyer before taking action.

  • Constructive Dismissal

    Constructive dismissal is a legal term used to describe conduct, or requirements made of you, which are so at odds with your job that it amounts to a fundamental breach of your employment contract. This breach allows you to act as though you have been fired and seek damages.

  • Employment Contract Review

    If you have a new job, you may be feeling very positive about it right now but it's important to fully understand exactly what you're getting into. Your contract will be in force not just during the first exciting days at your new job, but during times of trouble and at the end of your term, whether you are fired or choose to resign.

  • Contractor Status

    Many employees are not technically employees but contractors. The difference in what they do at work may be insignificant. You may not know whether you are an employee or independent contractor, or you may have been told that by being a contractor, you will have more freedom.

  • Workplace Harassment and Bullying

    Legislation and workplace harassment laws, such as the Occupational Health and Safety Act (OHSA), require that all employers have anti-harassment and anti-violence policies in the workplace to protect employees. Despite these measures, workplace harassment, such as workplace sexual harassment, still occurs.

  • Canada Pension Plan Disability Claims

    CPP's disability benefits are notoriously difficult to obtain. Many clients come to Vey Willetts LLP after they have been rejected, and we help them appeal the CPP's decision. Unfortunately, while they wait for their appeal, they live with delay and uncertainty.

  • Employment Insurance (EI)

    If you are laid off, fired or let go by your employer, it is important to promptly apply for EI benefits. If you delay applying for benefits beyond four weeks after your last day of work, there is a risk that you may lose your entitlement.

  • Human Rights and Discrimination

    Discrimination refers to an action or a decision that treats a person negatively as a result, for example, of their race, age or sex. In Ontario, the law protects against discrimination on an enumerated characteristic protected by human rights law.

  • Restrictive Covenants

    If you have signed, or been presented with, an employment contract that has a restrictive covenant it is important to understand what it means and what potential liability you could face if your employer sought its enforcement against you.

  • Denial of Disability Benefits

    One advantage of being an employee can be access to short and/or long-term disability benefits. Most of us may never need to rely upon these entitlements. When something goes wrong, however, it is important to ensure you and your family are provided with the financial support you need to focus on what matters: your health.

  • Workplace Privacy

    Employees are entitled to a certain expectation of privacy at work. How far this extends, however, will vary. Your expectation of privacy may be affected by where you work, the type of work you perform, and workplace policies your employer may institute. Employers are also required to make all reasonable efforts to protect any private information you provide to them.

  • Pregnancy and Parental Leave

    Understanding pregnancy and parental leave rights in Ontario is essential, as governed by the Employment Standards Act. Eligible employees can access up to 17 weeks of pregnancy leave and an additional 35-37 weeks of parental leave, providing crucial support during these important life stages.​​

  • What is 'Just Cause' for Dismissal?

    If you are fired for just cause, you will likely face a number of problems. These can include your former employer refusing to provide severance, Service Canada denying your application for Employment Insurance ("EI") benefits and potential negative work references while seeking re-employment.

  • Non-Compete/Solicitation Agreements

    Employers often struggle with retaining clients and customers, especially when former employees use their skills and experience to compete in the same market. To address this, employers may require employees to sign non-compete or non-solicitation agreements, which restrict former employees from competing or soliciting business from former clients.

  • Without Cause Termination and Employment Standards

    Terminating an employee without cause, often due to financial or restructuring reasons, requires adherence to the Employment Standards Act, 2000. This overview explains the employer's obligations for providing notice or pay in lieu and outlines severance pay entitlements in Ontario.

  • Employment Standards Act (ESA)

    The Employment Standards Act serves as the cornerstone of employment law in Ontario, setting out the minimum standards for most workplaces. It covers crucial areas such as wages, hours of work, and leaves, ensuring fair and equitable treatment for employees.

  • Types of Discrimination in the Workplace

    The Ontario Human Rights Code outlines various types of workplace discrimination, stemming from negative stereotypes and biases. It covers a broad range of grounds including age, sex, race, disability, marital and family status, pregnancy, gender identity, sexual orientation, and discrimination due to association, each defined with examples to illustrate how they manifest in the workplace.

  • Vacation Pay

    Navigating vacation pay in Ontario can be complex, but understanding it is crucial for both employers and employees. This guide breaks down the key aspects of vacation pay as outlined in the Employment Standards Act, 2000, ensuring clarity on what's included, what's excluded, and how it's calculated.

A Proven Track Record of Legal Success

Employment and Labour Laws are not always straightforward, but whether you are an employee or an employer, understanding your rights and duties will only stand to benefit you. Reach out to an employment lawyer or labour lawyer today if you have any questions and be sure to get what you deserve and safeguard yourself for the future. The lawyers at Vey Willetts LLP have a proven track record and are happy to assist.  Our Ottawa employment lawyers and labour lawyers serve clients throughout both Ottawa and Ontario. 

Call us today at 1-800-296-7989 or fill out our online form.