Sunday, December 31, 2006

Q. How do employees argue around unfair employment contracts?

A. Employees have 5 main arguments around onerous employment terms.

Given Ontario courts’ default position against enforcement of these covenants in restraint of free/natural trade, employer bears onus of proving vulnerable/proprietary interest justifying exception enforcement of employee’s non-compete/non-solicitation terms.

Even then, employee can still argue these clauses (a) over-reaching/unreasonable, (b) vague/ambiguous, (c) not fully understood/appreciated upon signing, (d) signed under duress only after having already forfeited prior/competing employment opportunities at the time, and/or otherwise (e) outgrown/outdated given long time passage and employment changes since original signing.

While not without risks and potential employer application for court injunction and/or lawsuits against both employee and their new employer – employee nevertheless holds strong arguments against enforcement of anti-competitive restraints based on personal freedoms of association and free-market right to earn a living in their field.

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