Is a non-solicitation clause in an employment agreement enforceable if it is limited to clients or clients of the employer?
Ontario, Canada
The following excerpt is from Stress-Crete Limited v. Harriman, 2019 ONSC 2773 (CanLII):
In addressing a non-solicitation clause, the question is whether the covenant in the Agreement are unenforceable as being against competition generally and not limited to former clients: J.G. Collins Insurance Agency v. Elsley, 1978 CanLII 7 (SCC), [1978] 2 S.C.R. 916 at p. 926. Where a non-solicitation provision is limited to customers or clients of the employer, a geographic limit is irrelevant and not required. In this case, the two-year clause appears to be in line with general industry norms.
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