Negative Covenants in an Employment Contract

Negative Covenants in Employment Contracts A negative covenant, also known as a restrictive covenant, is a term in an employment contract which states that the employee “shall not do” certain things following the end of employment. There are three popular types of covenants which restrain a person’s ability to carry on competitive employment, which are […]

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The Employment Contract

A written employment contract can be an important issue in the employment relationship. There are a number of factors to consider whether this agreement is enforceable. It should not be presumed that the words on the paper are conclusive in determining your rights as an employee. The Contract May Limit a Termination Claim Often, an […]

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Ontario Court of Appeal confirms unenforceable non-compete clause

In Donaldson Travel Inc. v. Murphy, the Ontario Court of Appeal recently upheld a lower court’s decision that a restrictive covenant in an employment contract was an unenforceable non-compete clause. What Happened? At issue in the original decision was an employee (Murphy) who resigned from Donaldson Travel Inc. (Donaldson Travel) in Cambridge and began working for a competing travel […]

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