This article examines the various complications that must be considered when drafting restrictive covenants in Canada which are capable of enforcement against former employees after they leave employment. Both non-competition and non-solicitation covenants are analysed, together with current judicial trends, descending scope clauses and over-reaching, and practical tips for drafting are included. The Ontario courts' relaxation of the rules when non-competition is a condition of a post-employment benefit is also examined, along with the specialised approach of the Québec courts.

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This article is part of the PLC global guide to labour and employee benefits. For a full list of contents visit www.practicallaw.com/labour-mjg.