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The Salon Non Compete Agreement is a crucial document for Canadian salon owners and beauty establishments seeking to protect their legitimate business interests. This agreement becomes necessary when hiring professionals who will have direct client contact, access to proprietary techniques, or exposure to confidential business information. It is particularly relevant in the Canadian context, where courts carefully scrutinize such agreements for reasonableness and typically favor narrowly tailored restrictions. The document should be used when onboarding new employees or contractors in positions where they could potentially harm the business by competing directly after their employment ends. The agreement includes specific provisions for geographic restrictions, time limitations, and scope of prohibited activities, all drafted to meet Canadian legal standards for enforceability. It also addresses client non-solicitation, protection of confidential information, and specialized training investments, while considering provincial variations in employment law.

1. Parties: Identifies and defines the parties to the agreement - the salon business (employer) and the employee

2. Background: Establishes the context of the agreement, nature of the salon business, and purpose of the restrictions

3. Definitions: Defines key terms used in the agreement, including 'Confidential Information', 'Competitive Business', 'Restricted Period', and 'Restricted Area'

4. Scope of Employment: Outlines the employee's role, responsibilities, and access to confidential information

5. Non-Competition Covenant: Details the specific restrictions on competing activities, including temporal and geographic limitations

6. Non-Solicitation of Clients: Prohibits solicitation of the salon's clients during and after employment

7. Non-Solicitation of Employees: Restricts recruitment or hiring of other salon employees

8. Confidentiality Obligations: Defines and protects confidential information, trade secrets, and client information

9. Acknowledgment of Reasonableness: Employee's acknowledgment that restrictions are reasonable and necessary

10. Remedies: Specifies available remedies for breach, including injunctive relief

11. Survival: Confirms which provisions survive termination of employment

12. General Provisions: Standard clauses including governing law, severability, and entire agreement