Non-competition clauses have recently come under fire, as some Canadian courts and legislatures have rebuffed their application to independent contractors and employees. Courts are generally cautious about enforcing these types of clauses because they are seen as a restraint on trade. Further, given the power imbalance inherent in employment and contractor relationships, non-competition clauses are

New legislation in Ontario introduces a first-in-Canada requirement for employers to prepare “disconnect from work” policies for their employees.  It also creates a novel prohibition on non-competition provisions in employment agreements.

On December 2, 2021 Bill 27, Working for Workers Act, 2021, (“Bill 27”) received royal assent, passing into law several amendments

The legal context

It is quite common for employers to include in an employment contract the possibility of unilateral waiver of the application of a non-compete obligation at the end of the employment relationship. French case law does permit such flexibility but only provided that (i) such waiver is expressly stipulated in the employment contract