Piling on the restrictions

Having both non-solicitation and non-competition agreements isn’t necessary to protect employer’s business: Court
By Andrew Treash
|Canadian Employment Law Today|Last Updated: 10/04/2011

A non-competition agreement in addition to a non-solicitation agreement is overkill and neither is valid if an employee is wrongfully dismissed, the Alberta Court of Appeal has ruled.

David Kelcher, Luciano Oliverio, and Mark MacLean were currency traders who worked for Globex, a currency exchange company. All three left Globex in March of 2005 and went to work for one of its competitors. Kelcher and Oliverio left voluntarily, but MacLean was fired.

Before leaving Globex, the defendants had signed agreements saying they would not compete with Globex nor would they solicit any of Globex’s customers for 12 months after their employment was terminated. MacLean signed the agreement before he started with Globex, but Kelcher and Oliverio signed after they had started working.