Ontario Bans Non-Compete Clauses, Creates Right to Disconnect
Effective Date
October 25, 2021
Prohibition on Non-Compete Clauses
As of October 25, 2021, employers are prohibited from entering into employment contracts or other agreements with employees that include a non-compete clause. This means that employees can no longer be prevented from working for a competitor or starting their own business in a similar field after leaving their current job.
Exceptions
There are a few exceptions to the ban on non-compete clauses, including: * When the employee is selling a business or part of a business * When the employee is a partner in a partnership * When the employee is a director or officer of a corporation * When the employee is a professional who is subject to a professional code of conduct that includes a non-compete clause
Right to Disconnect
In addition to banning non-compete clauses, the Ontario government has also created a right to disconnect from work. This means that employees have the right to refuse to work outside of their regular work hours and to take breaks during their work day.
Impact on Employers
The ban on non-compete clauses and the creation of a right to disconnect are significant changes to Ontario's employment law. Employers need to be aware of these changes and ensure that their employment contracts and policies are compliant.
Benefits of the Changes
The ban on non-compete clauses and the creation of a right to disconnect are expected to have several benefits, including: * Increased employee mobility * Reduced risk of employee burnout * Improved work-life balance
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