Non-Competition / Non-Solicitation

Non-Compete Reviews and Consultations

Many employment contracts and employment policy manuals contain Non-Solicitation and/or Non-Competition clauses. These clauses are also known as “restrictive covenants”. These are sometimes enforceable against employees in Alberta, but often they are not.

A very basic example of a non-solicitation clause is, “Employee shall not solicit the clients of Employer for a period of 12 months after termination of employment for any reason.”

A very basic example of a non-competition clause is, “Employee shall not be employed in the horseshoe manufacturing business in Calgary for a period of 12 months after termination of employment for any reason.”

Alberta courts do not like to enforce non-solicitation and non-competition clauses against employees, because they are what is known as “restraints of trade”: they can prevent labor mobility and can prevent someone from making a living, both of which are undesirable in a generally free society.

As a result, employers are only allowed as much protection with these kinds of clauses as is reasonable in a given situation.

Cautionary Notes

• If an employee breaches a non-solicit or non-compete agreement  and it turns out to be enforceable, the employee could be sued and could be liable for a substantial sum of money
• Analyzing these clauses and whether they would be enforceable in a given situation is difficult, but the lawyers at Bow River Law are skilled and experienced at providing advice to employees and employers on non-solicitation and non-competition agreements in Alberta
• If you intend to engage in solicitation of former clients, employees, suppliers, etc., and you have a non-competition or non-solicitation clause in your employment contract or policy manual, give us a call and let us help you understand your rights and risks.  We provide non-solicitation advice for employees in Calgary and throughout Alberta
• If you intend to compete with your former employer and you have a non-compete or non-solicit clause in your employment contract or policy manual, give us a call and let us help you understand your rights and risks.  We provide non-competition advice for employees in Calgary and throughout Alberta
• Even if you do not have these clauses in your employment contract or policy manual, if you intend to solicit or compete you should speak with a lawyer first, because employees have certain obligations to their employer that go beyond the written contract, and you should be aware of those before it is too late