First Reference company logo

Inside Internal Controls

News and discussion on implementing risk management

machine cogs image

restrictive covenant

BCCA eyes enforceability of restrictive covenant in IRIS appeal

Restrictive covenants are often a key component of employment agreements and commercial transactions. Enforceability, however, can be challenging, especially in the employment context

 

, , , , , , , ,

Five-year commercial restrictive covenant upheld

Non-competition and non-solicitation agreements are fairly common in employment contracts, but courts also commonly find them to be unenforceable due to unreasonable or unclear restrictions. When parties negotiate a restrictive covenant in the context of a transfer of a business, however, the rules are different, even where the seller of the business agrees to work for the buyer. The Supreme Court of Canada recently dealt with a case like this.

 

, , , , , , , , , , , , , , , , , , , , ,