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Employer non compete clause question

  • Last Updated:
  • May 8th, 2019 9:13 pm
[OP]
Newbie
Apr 24, 2019
3 posts
1 upvote

Employer non compete clause question

Field: Sale of financial securities including life insurance.

So I started working with this company which made me sign the contract with the non compete clause. The clause states that I cannot resign and join a "broker or dealer registered with provincial securities commission or any self-regulatory as either an employee or independent contractor engaged in the sale of securities and/or insurance business", if I do, there's a penalty.
My question here is: Will the major banks like Scotiabank, RBC, TD etc be considered the competition according to the above mentioned (broker or dealer thing). I do understand that the banks are involved in the sale but are they really broker, or will joining one of them will be a breach of the contract?
13 replies
Sr. Member
Jan 1, 2017
641 posts
457 upvotes
These non-compete clauses are not enforceable in Canada. You can just ignore it.
Deal Addict
Nov 10, 2018
2447 posts
2408 upvotes
ProductGuy wrote:
Apr 25th, 2019 7:13 am
These non-compete clauses are not enforceable in Canada. You can just ignore it.
Yes and no. You should not make such blanket statements.

No sense in reinventing the wheel.

https://www.canadaemploymenthumanrights ... forceable/
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Deal Expert
Aug 22, 2011
28844 posts
14655 upvotes
Ottawa
ProductGuy wrote:
Apr 25th, 2019 7:13 am
These non-compete clauses are not enforceable in Canada. You can just ignore it.
Hmm, not enforceable, but I would have to forfeit my bonuses and stock options that are part of my contractual agreement?
Sr. Member
Jan 1, 2017
641 posts
457 upvotes
vkizzle wrote:
Apr 25th, 2019 12:51 pm
Hmm, not enforceable, but I would have to forfeit my bonuses and stock options that are part of my contractual agreement?
These typically are tied to when you are leaving the company and not where you are going. They are based on date of last day employed or specific maturity date. So if you leave before you hit the specific dates you lose them regardless of where you are going.
Deal Expert
Aug 22, 2011
28844 posts
14655 upvotes
Ottawa
ProductGuy wrote:
Apr 25th, 2019 12:58 pm
These typically are tied to when you are leaving the company and not where you are going. They are based on date of last day employed or specific maturity date. So if you leave before you hit the specific dates you lose them regardless of where you are going.
You know the details of my contract?
Sr. Member
Jan 1, 2017
641 posts
457 upvotes
vkizzle wrote:
Apr 25th, 2019 1:07 pm
You know the details of my contract?
Sounds like you don’t know the details of your own contract either since you are asking on the forum. Go check and come back to tell us.
Deal Expert
Aug 22, 2011
28844 posts
14655 upvotes
Ottawa
ProductGuy wrote:
Apr 25th, 2019 1:25 pm
Sounds like you don’t know the details of your own contract either since you are asking on the forum. Go check and come back to tell us.
I know it very well...seems you like to make general statements!
Sr. Member
Jan 1, 2017
641 posts
457 upvotes
vkizzle wrote:
Apr 25th, 2019 1:26 pm
I know it very well...seems you like to make general statements!
Lol if you notice my post I said “typically” which means in most cases or in general. So yes, that statement was a general one. I’ve never heard of bonuses or stock options tied to where you go if you leave the company.
Deal Expert
Aug 22, 2011
28844 posts
14655 upvotes
Ottawa
ProductGuy wrote:
Apr 25th, 2019 1:39 pm
Lol if you notice my post I said “typically” which means in most cases or in general. So yes, that statement was a general one. I’ve never heard of bonuses or stock options tied to where you go if you leave the company.
"You never heard"!
Deal Addict
Nov 10, 2018
2447 posts
2408 upvotes
ProductGuy wrote:
Apr 25th, 2019 12:58 pm
These typically are tied to when you are leaving the company and not where you are going. They are based on date of last day employed or specific maturity date. So if you leave before you hit the specific dates you lose them regardless of where you are going.
This is common in the industry, and I do support this blanket statement. At Google, Apple, Facebook, Microsoft and a few other places I have worked, it is always based on the last date of employment. Bonuses, whether or not they be tied to revenue attainment or commitments, each have their own date to which everything is based from.

Obviously any stock that has not vested yet based on the last date of employment is lost.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
Deal Addict
Oct 6, 2015
2160 posts
1142 upvotes
A tell-tale sign of an abusive employer. It is well established in case law that you're not entitled to divulge or use confidential information of your previous employer for a new employer. This doesn't need to be added to an employment contract explicitly. Only disreputable employers intent on intimidating you will add non-competes at the non-executive level.
Deal Addict
User avatar
Mar 29, 2008
3205 posts
469 upvotes
This isn’t a non-compete and it would be helpful if the OP copied/pasted the entire clause.
[OP]
Newbie
Apr 24, 2019
3 posts
1 upvote
random pattern wrote:
Apr 27th, 2019 8:02 pm
This isn’t a non-compete and it would be helpful if the OP copied/pasted the entire clause.
I think you might be right.
Here's the actual thing:

Company A is the employer.

If within 3 years of registration you terminate your employment with company A and accept employment with a broker or dealer registered with any provincial securities commission as either an employee or independent contractor engaged in the sale of securities, you agree to reimburse company A the reasonable cost of the training including selection and screening process.

My question, in the original post is: Will the major banks like Scotiabank, RBC, TD etc be considered the competition according to the above mentioned (broker or dealer thing).

Thanks

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