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View Full Version : Non-compete agreement AFTER several years of employment



m_bisson
02-08-2015, 07:18 AM
Have any of you had to sign (or been asked to sign) a non-competition agreement by your employer even though you've already been working for them?

Can they fire you for not signing it?

What did they offer you as part of the agreement? Was it just your "continued employment"?

Did you sign it or did you refuse? Consequences?

Slade
02-08-2015, 07:46 AM
Not sure what that is but most of us where I work sign a non disclosure agreement because of what we do or know.
They make you sign it as part of the job offer.

m_bisson
02-08-2015, 08:13 AM
That's a very different agreement, and not really a problem.
A Non-compete means that if I lose my job, for whatever reason, I can't work for a company that provides similar services for a period of time. In this case it's 1 year.

loki
02-08-2015, 09:10 AM
Seems like a weird thing for a painting company, if I remember you were a painter

Unless you personally have a client base they are afraid you would take from them

A non-compete clause cannot be enforced if it prevents you from earning a living

As in you may not be able to start your own company because of the agreement, but it can't stop you from working for another existing company

m_bisson
02-08-2015, 09:24 AM
I have a second part-time job. It pays quite well, for what it is, otherwise I wouldn't really care.
Frey knows where it is, he used to park beside me and make my car look bad.

I've Google'd a bit, and it seems like it likely would be unenforceable. My only question is, why now? Could they be selling the company and not telling us?

loki
02-08-2015, 09:33 AM
It is weird

But sometimes companies want to fill the gaps in their policies. Maybe they see this as a gap/liability?

SomeGuy
02-08-2015, 09:39 AM
It's just the company covering their ass...they don't want people to take the knowledge/skills/trade secrets they learn and start up a competitive business.

loki
02-08-2015, 10:00 AM
Just sign it if you like working there

Jackal
02-08-2015, 10:18 AM
I'd wait and hear from an actual lawyer or someone in employment law on TM3. Who are the lawyers or members studying law on here?

m_bisson
02-08-2015, 10:18 AM
Just sign it if you like working there

Turns out one of my coworkers called our Union and was instructed not to sign it. Only 2 or 3 people actually signed so far, so I'm holding out until things are sorted out.

Stathakos
02-08-2015, 10:51 AM
I'd wait and hear from an actual lawyer or someone in employment law on TM3. Who are the lawyers or members studying law on here?

Be careful, a lot of people on here think they are qualified lol.

Cc: RTEnthusiast

Squisher
02-08-2015, 11:20 AM
I'm not qualified but I wouldn't sign it as an employee. I've owned a couple businesses and its a pretty standard thing when selling a business for obvious reasons. As an employee? Get bent would be my thought. Maybe different if you were management with a contract, but if you're on hourly forget it. My point to the employer would be if you don't want me to become competition you better damn well keep me happy then.

Squisher
02-08-2015, 11:23 AM
In my youth I was a logger and more than once quit an employer to go do the same thing for another employer for more money. How would it look for you if you signed this letter and then another company offered you twice the renumeration you currently receive to come and do the same thing for them?

bbbwood
02-08-2015, 11:47 AM
They can't prevent you from gainful employment in the event you are dismissed. If you quit, it may be a slightly different story. No sure about the latter.

Bully Dog Racing
02-08-2015, 12:13 PM
Usually it is best to comply...resistance is futile and all that. And yes I signed mine.

If you are in good standing with your employer there is nothing (usually) to worry about.

It is just insurance on your employers part to make sure any proprietary intellectual property stays with them should you leave.

Jackal
02-08-2015, 12:48 PM
Turns out one of my coworkers called our Union and was instructed not to sign it. Only 2 or 3 people actually signed so far, so I'm holding out until things are sorted out.

Go with this.

mazdasport
02-08-2015, 04:25 PM
I had to sign one when I started working for my current employer, but if I'm not mistaken there is a law in Ontario that your employer can not stop you from getting employment whether you leave or are fired not sure of this maybe someone on here knows the labours laws really well and can chime in

loki
02-08-2015, 04:51 PM
I had to sign one when I started working for my current employer, but if I'm not mistaken there is a law in Ontario that your employer can not stop you from getting employment whether you leave or are fired not sure of this maybe someone on here knows the labours laws really well and can chime in

I already said a non-compete clause cannot stop you from earning a living

It can stop you from starting your own company and stealing clients

loki
02-08-2015, 04:56 PM
A lot of engineers in management positions will have non-compete clauses but if they leave, they can still work for another existing firm. They can't try to take their clients with them until the period of their clause is over

m_bisson
02-08-2015, 05:19 PM
A lot of engineers in management positions will have non-compete clauses but if they leave, they can still work for another existing firm. They can't try to take their clients with them until the period of their clause is over

loki that's called a non-solicitation agreement. It's separate and different than a non-competition.

The courts will almost always enforce a non-solicitation agreement, but are much less likely to enforce a Non-compete. It IS still enforceable if worded properly and the company/employer does it all correctly.

Hence my original question: what happens now that they're asking me to sign it AFTER working for so long?

If I had signed it before I started working, as part of the initial paperwork, it would be a different story. But now, what can they do? It might be less likely to be enforced since it wasn't accompanied by a promotion, bonus, or pay raise, but in some cases "continued employment" is enough of a consideration to satisfy the courts.

fruitloops
02-08-2015, 05:25 PM
Anyone else know what a non compete is just from watching suits?

ooltra
02-08-2015, 05:56 PM
I already said a non-compete clause cannot stop you from earning a living

It can stop you from starting your own company and stealing clients

this right here. even then it wouldn't actually stop you from starting your own company, but may open the door for you to be sued. But as far as stopping you from jumping ship to another company, no it is not enforceable.

loki
02-08-2015, 06:02 PM
The second part I mentioned is soliciting, but starting your own firm is competing

loki
02-08-2015, 06:03 PM
Anyone else know what a non compete is just from watching suits?

What's suits?

Aitch
02-08-2015, 06:07 PM
Everyone is discussing what the implications are of leaving the job. I haven't really seen anyone address what would happen if a current employee refuses to sign one after a few years of employment.

loki
02-08-2015, 06:16 PM
Everyone is discussing what the implications are of leaving the job. I haven't really seen anyone address what would happen if a current employee refuses to sign one after a few years of employment.

His Union has been notified, they'll find out soon enough

m_bisson
02-08-2015, 06:22 PM
Our contract was supposed to be mailed out Feb 1st. The union renegotiates it every 3 years.

Nobody has received it yet, so there might be something happening and this is a last ditch effort to cover their asses. Or the company is being sold (not likely).

fruitloops
02-08-2015, 06:30 PM
What's suits?
Only the best show ever made. You would like it.

PearlM3
02-08-2015, 06:57 PM
I am not a lawyer, but from my understanding if your employer wants to revise your contract mid - tenure they must provide some sort of monetary value ie..bonus, raise etc...that was not already due....my employer recently revised my contract, it had a few things that were stupid in it so I had my lawyer check it out. He said to just sign it, I've worked for the company for 10 years, any stupid revisions to a contract at that point would not be enforceable in court, especially a non - compete, which is essentially unenforceable in Canada as it is.