Non-Solicitation Agreement Ontario Template: What You Need to Know
If you`re running a business in Ontario, Canada, you want to make sure that your employees are not soliciting your clients or customers after they leave your organization. This is where a non-solicitation agreement comes into play.
A non-solicitation agreement helps protect your business from losing clients and customers to a former employee. It is a legal contract that restricts an employee from soliciting your clients and customers for a certain period of time. It also prevents an employee from providing services that are similar to yours to your former clients and customers.
To ensure that your non-solicitation agreement is valid and enforceable in Ontario, you need to use a template that is specific to the province`s laws. Here are some important things to consider when drafting a non-solicitation agreement for your Ontario-based business:
1. Duration of the non-solicitation period
The non-solicitation period should be reasonable and not too long. In Ontario, a period of six months is usually deemed to be reasonable.
2. Definition of “Clients” and “Customers”
The non-solicitation agreement should clearly define what constitutes a “client” or “customer”. This will help ensure that the agreement is specific and enforceable.
3. Scope of the non-solicitation agreement
The non-solicitation agreement should also clearly define the scope of the restrictions being placed on the employee. This means outlining what activities are prohibited, such as soliciting customers, providing similar services, or working for a competitor.
4. Consideration
A non-solicitation agreement is only enforceable if the employee receives some form of consideration in return, such as a salary increase, bonus, or a new job title.
5. Legal Review
It is important to have a lawyer review the non-solicitation agreement before it is executed. This will ensure that the agreement is legally sound and enforceable.
Using a non-solicitation agreement template that is specific to Ontario`s laws can help protect your business from losing clients and customers to a former employee. It is essential to ensure that the agreement is reasonable and specific, and that the employee receives some form of consideration in return. Consulting with a lawyer can also help ensure that the agreement is legally sound and enforceable.