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Employment Contracts

Clause that required veterinarian to pay former employer if she set up practice in same area enforceable

Jurisdiction: - British Columbia

In Rhebergen v. Creston Veterinary Clinic Ltd., 2014 BCCA 97, the majority of the BC Court of Appeal ruled that a non-compete type clause in an employment agreement that required a veterinarian to pay her former employer prescribed amounts if she set up her own practice in the same area within a three year total period, was enforceable.

The headnote / summary of the case is as follows:  read more »

SCC: Restrictive covenant rules differ depending on whether tied to sale of business or employment contract

In Payette v. Guay inc., 2013 SCC 45,  the Supreme Court of Canada confirmed that the rules applicable to restrictive covenants differ depending on whether the covenants are tied to a sale of a business or to an employment contract. For more information on this case, see my previous entry here: "SCC to hear Quebec case on impact of sale of business, wrongful dismissal on enforceability of non-compete".