When a Non Solicitation Clause Becomes a Non Compete Clause

Whenever an employee joins an organization, they are asked to sign an employee contract. Employee contracts are becoming a common thing all over the world. In fact, it has been seen that employers take all protective measures in order to ensure their trade secrets or client information is not leaked to their competitors. As a result, it has become very common to witness some restrictive deals such as non-solicitation or non-compete clauses.

In case, an employee gets confused with the two clauses, Toronto labour lawyers can help you out. Any labour attorney can explicitly define about the two clauses to an employee. Basically, a non-compete clause can stop an employee from working with a competitor of the former employers, even if they are not working with the employer any more.

On the other hand, non-solicitation clause can prevent an employee from getting in touch with the clients of a former employer in order to carry out business with them.

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Enforceability of Non-Compete Clauses

For many employees, one question might strike their mind, i.e. when the non-compete or non-solicitation clause can be enforceable. Well, according to employment lawyers or Toronto labour lawyers non-compete clauses can be implemented for exceptional situations. In fact, they are considered to be very restrictive. On the other hand, non-solicitation clause can be used by employers at any point when they don’t want to infringe the rights of the employee.

 

Many Times Non-Solicitation Cause Can Become Non-Compete Clause

There has been many cases when an employee has been brought to court for breaching the non-solicitation clause. In many cases, Toronto labour lawyers have shown that sometimes a non-solicitation clause can become a non-compete clause. For example, a person worked with a travel agency A for few years and after quitting the job the person started working with a competitor travel agency B. During joining the job, if the person had signed a contract which stated like, “an employee on their resignation or termination won’t accept or promote business from other business corporate which is also provided by the current employer directly or indirectly.”

 

Hence, when it was found that the former employee after leaving travel agency A and while working in travel agency B started to seek customers of previous employers it was considered to be a  case of employee contract breach.  In cases like this, the trail court can consider it to be a case of non-competition clause.

 

What Does It Mean Foe Employers and Employees?

Toronto labour lawyers states that employers need to be extremely careful about the type of restrictive clauses that they want to include in the employee contracts. The clauses should be carefully dratted so that there is no reason of doubt about it. In case, a non-solicitation clause is carefully made, it can protect the interest of the employer.

For employees, they should remain fully informed about what’s written in the contract. If there is any need, one can seek legal advice. There have been many instances when an employee has faced many legal battles for signing the contract without knowing about the clauses in details.

Toronto labor lawyers are out there to help both employers and employees. They work towards protecting the rights of the employers and employees at the workplace.