Employment Termination Agreement and Restraint of Trade

Posted by Johannes Schenk on March 15th, 2014 — Posted in Employment Law, Labour Law, Litigation

Rhebergen v. Creston Veterinary Clinic Ltd., 2014 BCCA 97 concerns a form of post-employment non-competition agreement. These types of agreements being in the nature of a restraint on trade must be reasonable. Courts will hold overbroad conditions unenforceable. Be careful with restrictions you place on the departing employee’s ability to work. If the area that you don’t want the employee to work in is too large, or the duration of the limitation is too long or there is a large financial penalty placed on the employee you will have a problem enforcing the non-compete agreement.