Non-Compete Agreements in Ontario: Banned for Employees, Alive for Business Deals
Did you know that Ontario banned non-compete agreements for most employees back in 2021?
Plenty of employers still don’t, and plenty of workers are still signing clauses that are legally dead on arrival.
But here’s the twist: the ban has a massive exception. When a business is sold, the non-compete the seller signs is very much alive and enforceable. The same clause that means nothing in an employment contract can be the most important protection in a purchase agreement.
We work on these clauses from both sides in business sales, and the difference between an enforceable one and a worthless one comes down to drafting.
This guide explains where the line sits, what the ban actually covers, and how non-competes really work in Ontario business deals.
