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General Non Compete Agreement Template for Canada

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Key Requirements PROMPT example:

General Non Compete Agreement

"I need a General Non-Compete Agreement for my Toronto-based software development company to protect our business interests when our senior developers leave, with specific focus on preventing them from working with our direct competitors in Ontario for 12 months after their departure."

Document background
The General Non Compete Agreement serves as a crucial business protection tool in the Canadian legal landscape, designed to safeguard legitimate business interests while respecting employment rights and competition laws. This document is typically used when onboarding key employees, during business acquisitions, or in partnership formations where protection of business interests, trade secrets, and customer relationships is paramount. The agreement must be carefully crafted to ensure enforceability under Canadian law, which generally requires restrictions to be reasonable in scope, duration, and geographic reach. Recent legislative changes, particularly in Ontario with the Working for Workers Act, have placed additional limitations on non-compete agreements, making it essential to consider provincial variations and exceptions for executive-level positions or business sale scenarios.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the non-compete provisions

3. Definitions: Clear definitions of key terms including 'Competitive Business', 'Restricted Territory', 'Restricted Period', and other relevant terms

4. Scope of Non-Competition: Detailed description of prohibited competitive activities, including specific business types and roles

5. Geographic Restrictions: Clear definition of the geographic area where restrictions apply, ensuring reasonableness

6. Duration: Specific timeframe for the non-compete obligations, including start and end dates

7. Consideration: Description of the consideration provided in exchange for the non-compete obligations

8. Confidentiality Obligations: Provisions regarding the protection of confidential information and trade secrets

9. Acknowledgments: Party acknowledgments regarding reasonableness of restrictions and receipt of independent legal advice

10. Remedies: Available remedies in case of breach, including injunctive relief and damages

11. Severability: Provisions for severability if any portion is found to be unenforceable

12. Governing Law: Specification of applicable Canadian jurisdiction and governing law

13. General Provisions: Standard contract terms including amendments, notices, and entire agreement clause

Optional Sections

1. Sale of Business Provisions: Additional provisions specific to non-compete in the context of business sale transactions

2. Executive-Specific Provisions: Additional terms specific to executive-level employees, including special considerations and obligations

3. Garden Leave: Provisions for paid leave during part or all of the restricted period

4. Non-Solicitation: Additional restrictions on solicitation of employees, customers, or suppliers

5. Intellectual Property: Provisions regarding ownership and protection of intellectual property developed during employment

6. Return of Property: Requirements for returning company property and materials upon termination

7. Survival: Specification of which provisions survive termination of employment or main agreement

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed map or description of geographic areas where restrictions apply

2. Schedule B - Restricted Activities: Comprehensive list of specific prohibited business activities and roles

3. Schedule C - Competitor List: List of specific competitors or competing businesses if applicable

4. Schedule D - Consideration Details: Detailed breakdown of consideration provided for the non-compete obligations

5. Appendix 1 - Acknowledgment Form: Form for acknowledging receipt of independent legal advice and understanding of restrictions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























Clauses


























Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Manufacturing

Retail

Consulting

Pharmaceuticals

Software Development

Telecommunications

Engineering

Research and Development

Sales and Distribution

Media and Entertainment

Relevant Teams

Human Resources

Legal

Executive Leadership

Sales

Business Development

Research and Development

Product Development

Operations

Information Technology

Finance

Strategic Planning

Client Services

Professional Services

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Sales Manager

Research Director

Regional Manager

Business Development Executive

Technical Lead

Senior Software Engineer

Account Executive

Product Manager

Sales Director

Chief Financial Officer

Operations Manager

Managing Director

Senior Consultant

Department Head

Vice President

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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