September 18, 2021

When hiring, think about the employee`s ability to bring your customers to a competitor. If so, protect your client relationships by having your employment professional draw up an employment contract containing a duly formulated no-debauchery clause. A no-debauchery clause in effect must generally clearly indicate to the former employee which customers, sponsors or employees are prohibited from advertising. In some cases where some clients have not been clearly identified, it has been found that non-requests are ambiguous in their practical implementation and are therefore not applicable and not applicable. A no-poof clause is appropriate in terms of the public interest if there is a fair balance between maintaining open competition in commerce and the right of employers to protect their legitimate business interests. A no-pocher clause, ambiguous as to the duration, geographical scope or scope of the prohibited activities, is, in the first place, inappropriate and unenforceable. In contrast, in the recent decision of MD Physician Services Inc. v. Wisniewski, the Ontario Court of Appeal upheld a decision of the Ontario Superior Court of Justice that imposed a no-pocher clause and found that the councillors (and their new employer) were liable for a violation of that clause. The Court of Appeal expressly approved the application by the first instance of specific criteria to the question of whether or not such a clause should be applied. The judge found that both Sleeth and Wisniewski violated the no-poaching clause in their respective agreements and that RBC was responsible for the violation.

Counsel and RBC appealed the trial judge`s finding. No-pox clauses generally allow a former employee to “compete,” but prevent them from promoting the former employer`s customers and sometimes employees. the non-debaucher clause must include appropriate restrictions on the duration of the non-debauchery clause; the geographical location where the non-debauchery clause applies; and activities prohibited by the clause. For example, if the non-debaucher clause does not set the period of application of the clause or attempts to set an inappropriate period (for example. B a 10-year limitation of the invitation for a 3-year employee), the no-poch clause is deemed inappropriate and therefore unenforceable. . . .