The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Yet Another Way Canadian Employment Law Can Mess You Up

U.S. clients are always surprised that one step across the 49th parallel opens up such a radically different (employee-favo(u)rable) world in employment law.  Here’s the latest and greatest…

The Supreme Court of Canada recently handed down a decision in Shafron v. KRG Insurance Brokers (Western) Inc. … that highlights how narrowly Canadian courts will interpret and apply restrictive covenants in employment contracts. The Supreme Court has reinforced the Canadian view that a restrictive covenant is prima facie a restraint on trade and that only restrictive covenants that are reasonable (i.e., limited and directly tied to a demonstrable economic concern) and unambiguous will be enforced.

Because the non-compete clause used the phrase “Metropolitan City of Vancouver,” which did not have a fixed meaning, the entire clause was voided. 

As you can guess from the caption, this was a case in the insurance industry, but biotech employers have at least as tricky a time defining appropriate territory, scope and duration limitations and this decision emphasizes that there is very little room for error.  Read the full Ogilvy Bulletin here.

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2 responses to “Yet Another Way Canadian Employment Law Can Mess You Up

  1. Pingback: Yet Another Way Canadian Employment Law Can Mess You Up « The … « Employment Law

  2. Pingback: Blawg Review #207

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