Non-competition agreements rarely pay off

Recent decisions of the Supreme Court of Canada and the Ontario Court of Appeal signal a renewed opposition to non-competition covenants in employment agreements. Since non-competition agreements will be enforced in only the rarest of circumstances, the most effective way to curtail the injurious effects of senior employee departures may be to use carefully drafted agreements prohibiting the solicitation of former clients and former co-workers.

The Lawyers Weekly, May 2009