The Cross-Border Biotech Blog

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

Tag Archives: Shafron

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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