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The Employee Non-Compete Agreement serves as a critical tool for Canadian businesses to protect their legitimate business interests, including confidential information, customer relationships, and competitive advantage. This document becomes particularly relevant when onboarding senior employees, executives, or specialists with access to sensitive information or key client relationships. It must be carefully drafted to comply with Canadian federal and provincial employment laws, including recent legislative changes such as Ontario's restrictions on non-compete clauses. The agreement typically specifies reasonable temporal and geographical limitations, defines prohibited competitive activities, and includes provisions for non-solicitation of customers and employees. Given the courts' strict scrutiny of such agreements in Canada, the restrictions must be demonstrably necessary to protect the employer's legitimate business interests and not overly broad in scope.

1. Parties: Identification of the employer and employee, including legal names and addresses

2. Background: Context of the agreement, employment relationship, and legitimate business interests being protected

3. Definitions: Key terms including 'Confidential Information', 'Competitive Business', 'Restricted Territory', and 'Restricted Period'

4. Scope of Employment: Overview of employee's role, access to confidential information, and relationships with customers/clients

5. Non-Competition Obligations: Specific restrictions on competitive activities, including temporal and geographical limitations

6. Non-Solicitation of Customers: Restrictions on approaching or dealing with company customers or prospective customers

7. Non-Solicitation of Employees: Restrictions on recruiting or hiring company employees

8. Confidentiality Obligations: Requirements to maintain confidentiality of company information

9. Acknowledgments: Employee's confirmation of reasonableness and understanding of restrictions

10. Duration: Time period for which restrictions apply post-employment

11. Geographic Scope: Specific territories where restrictions apply

12. Return of Property: Obligations regarding company property and information upon termination

13. Remedies: Available remedies in case of breach, including injunctive relief

14. Governing Law: Applicable Canadian jurisdiction and law

15. General Provisions: Standard clauses including severability, modification, and survival