This document is utilized when an organization needs to protect its legitimate business interests by preventing former employees or contractors from engaging in competitive activities or soliciting employees, customers, or clients. A Non-Compete Non-Solicitation Agreement is particularly crucial for roles involving access to sensitive information, key client relationships, or specialized knowledge. Under Canadian law, these agreements must be carefully drafted to ensure enforceability, as courts generally favor an employee's right to earn a living over overly broad restrictions. The agreement typically specifies the duration of restrictions, geographic scope, prohibited activities, and clearly defines what constitutes competition and solicitation. It's commonly used during hiring, promotions, or business acquisitions, and must be supported by valid consideration to be enforceable.
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1. Parties: Identification of the employer/company and the individual bound by the agreement
2. Background: Context of the agreement, including the nature of the relationship between parties and legitimate business interests being protected
3. Definitions: Key terms including 'Confidential Information', 'Competitive Business', 'Territory', 'Restricted Period', 'Customer', 'Prospect', and 'Solicitation'
4. Non-Competition Obligations: Specific restrictions on competing activities, including scope of prohibited activities, geographic limitations, and duration
5. Non-Solicitation of Customers: Restrictions on approaching or dealing with customers or prospects of the company
6. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees
7. Acknowledgments: Statements confirming the reasonableness of restrictions and receipt of consideration
8. Independent Legal Advice: Confirmation that the individual had the opportunity to seek independent legal advice
9. Survival: Provisions specifying which obligations continue after employment/relationship termination
10. Remedies: Available remedies in case of breach, including injunctive relief
11. General Provisions: Standard clauses including governing law, severability, and entire agreement
1. Garden Leave: Optional section for agreements where paid leave may be required during notice period - typically used for senior executives
2. Consideration: Separate section detailing specific consideration provided, needed when agreement is signed after initial employment
3. International Provisions: Additional provisions for agreements covering multiple jurisdictions
4. Assignment Rights: Section allowing transfer of agreement rights in case of company sale/merger
5. Return of Property: Detailed provisions regarding return of company property - particularly relevant for senior positions
6. Conflict Resolution: Alternative dispute resolution procedures - useful for high-value agreements
1. Schedule A - Restricted Territory: Detailed description or map of geographic areas where restrictions apply
2. Schedule B - Competitive Business Definition: Detailed list of specific competing businesses or business types
3. Schedule C - Protected Customers: List of specific customers or customer categories covered by non-solicitation provisions
4. Appendix 1 - Consideration Details: Details of any special consideration or compensation provided in exchange for the restrictions
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