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Non-Compete clauses are difficult to enforce
By Neil Curtis, HR Consultant

NCHR has received a number of calls recently from organizations inquiring about how to protect themselves from former employees who poach their clients as they begin working with a competing firm.

This is a complicated area to address, largely because typical Non-Compete clauses are very difficult to enforce, as society generally prevents us from restricting the average employee’s right to earn a living, or from joining a competitor in your industry.

Perhaps a better approach is to also implement a Non-Solicitation clause to discourage your former employee from pursuing customers (and prospective customers) they dealt with under your employ.
If the restrictive terms are reasonable, this can be a more effective method of protecting your organization, and is generally easier to prove. That said, the savvy former employee will cover their tracks well to ensure no evidence of their solicitation efforts exist, so enforcing a Non-Solicitation clause is not without its challenges.

In the next NCHR e-newsletter we will identify some of the latest creative strategies organizations have implemented, which appear to be turning the tide in this area to a degree.

The Ministry of Labour conducted an inspection blitz last September and October of workplaces with previous Employment Standard Act violations. The blitz primarily focused on sectors such as building services, professional services, amusement and recreation industries, personal care services and others sectors with repeat violators.

Of the 104 total inspections of workplaces with past Employment Standards Act violations, only 27 were compliant during this blitz.

The most common violations were in the following areas, resulting in Compliance Orders, Notices of Contravention, Tickets (fines), or Orders to pay wages:
  • Public Holidays
  • Overtime
  • Vacation with Pay
  • Hours of Work
  • Record-Keeping
If you have questions about how to appropriately navigate any of these areas for your organization, please give NCHR a call.

3425 Harvester Road, Unit 110 | Burlington, ON L7N 3N1 | TF: 1-844-823-9091

Neil Curtis - NCHR:
905-818-NCHR (6247)

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Green Benefits Group Inc. · 3425 Harvester Road · Unit 110 · Burlington, ON L7N3N1 · Canada

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