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Non-Competition Contracts

Expert: CO

Ray asked:

I was wondering how I would develop a professional looking contract. One that would limit an employee from starting a similiar biz. One that would secure the services of a client for a specified period.

CO answered:

Noncompetition contracts are difficult to enforce in Canada. In his book, The HR Book, Lin Grensing-Pophal explains that courts are often reluctant to uphold noncompetition agreements, and in many cases courts tend to take an all-or-nothing approach, either upholding the whole agreement or throwing them out entirely. (The HR Book, ISBN 1-55180-241-4, p134)

In order to be binding in your situation, a legal contract will need to be carefully worded. For this reason, lawyers with experience in contract law should be called on to draft the template form that will be used by your organization.

There are standardized templates that can be purchased from bookstores and business supply stores. However, you should still seriously consider seeking the advice of a lawyer, even if it is just to ask the lawyer to review a standard contract that you have purchased. If it is important to you that the contract be binding, input from a lawyer with experience in this area will be a must.

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