Document background
The Agreement Not To Work For Competitor is a crucial document for Canadian businesses seeking to protect their legitimate business interests, intellectual property, and competitive advantage. This agreement is typically used when onboarding senior executives, key technical personnel, or employees with access to sensitive information. However, its use must comply with strict Canadian legal requirements, including recent provincial legislation like Ontario's Bill 27 which generally prohibits non-compete agreements except for executive positions and business sales. The agreement must specify reasonable temporal and geographical limitations, clearly define competitive activities, and balance the employer's interests with the employee's right to earn a living. It's essential to note that Canadian courts generally scrutinize these agreements carefully and will only enforce those that are demonstrably reasonable and necessary to protect legitimate business interests.
