Sunday, December 31, 2006

Q. When are employment terms too vague for enforcement?

A. Unrestricted employment covenants are often unenforceable at law.

In Drake International Inc. v. Tennenbaum (1986), 10 C.P.R. 119 (Ont. H.C.J.), Callaghan A.C.J.H.C. held a covenant to be unenforceable on the basis that it was vague as to time and silent as to geographical area.

Similarly, many non-compete provisions are too vague for enforcement by Ontario courts, unnecessarily broad/open-ended, unrestricted by geographic area and/or particular field, and therefore overreaching in so far as potentially including entire public at large.

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