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2 Year Non Compete Agreement Template for Canada

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Key Requirements PROMPT example:

2 Year Non Compete Agreement

"I need a 2 Year Non Compete Agreement for our senior software developer who will be leaving our Toronto-based AI company on March 1, 2025, with specific provisions to protect our intellectual property and client relationships across Ontario and Quebec."

Document background
This 2 Year Non Compete Agreement is designed for use in Canadian business contexts where employers need to protect legitimate business interests from competitive activities by former employees. The document is particularly relevant when employees have access to confidential information, trade secrets, customer relationships, or specialized knowledge that could provide a competitive advantage if used by a competitor. It includes specific provisions compliant with Canadian federal and provincial laws, clearly defined geographical and temporal restrictions, and consideration requirements. The agreement should be used selectively for key employees where protection is genuinely necessary, as Canadian courts carefully scrutinize such restrictions and will only enforce those that are demonstrably reasonable and not overly broad in scope.
Suggested Sections

1. Parties: Identification of the employer and employee/former employee with full legal names and addresses

2. Background: Context of the agreement, including the employee's former position and access to confidential information

3. Definitions: Clear definitions of key terms including 'Confidential Information', 'Competing Business', 'Territory', and 'Restricted Period'

4. Non-Competition Obligations: Specific restrictions on competing activities, clearly defining prohibited activities and scope

5. Geographic Scope: Clearly defined geographical boundaries where restrictions apply

6. Duration: Specific timeframe of the non-compete obligations (2 years in this case)

7. Consideration: Details of the consideration provided in exchange for the non-compete agreement

8. Acknowledgments: Employee's acknowledgment of the reasonableness of restrictions and receipt of independent legal advice

9. Survival: Provisions that continue after employment termination

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

11. Governing Law: Specification of Canadian law and jurisdiction

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

Optional Sections

1. Non-Solicitation Provisions: Additional restrictions on soliciting customers or employees, used when there's direct customer contact

2. Intellectual Property Protection: Additional provisions protecting IP rights, used when employee had access to proprietary technology

3. Garden Leave: Provisions for paid leave during notice period, used for senior executives

4. Return of Property: Specific requirements for returning company property, used when employee had access to physical or digital assets

5. Cooperation Clause: Requirements for cooperation in transition of duties, used for key personnel

6. Industry-Specific Restrictions: Additional restrictions specific to particular industries or professions

Suggested Schedules

1. Schedule A - Restricted Territory: Detailed map or list of geographical areas where restrictions apply

2. Schedule B - Competing Businesses: Comprehensive list of specific competitors or types of competing businesses

3. Schedule C - Consideration Details: Breakdown of any financial compensation or benefits provided

4. Appendix 1 - Confidential Information: Detailed list of types of confidential information covered

5. Appendix 2 - Prior Inventions: List of employee's prior inventions or intellectual property excluded from the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































Clauses






























Relevant Industries

Technology

Professional Services

Financial Services

Healthcare

Pharmaceuticals

Manufacturing

Research and Development

Consulting

Sales and Marketing

Software Development

Biotechnology

Engineering

Executive Search

Investment Banking

Management Consulting

Relevant Teams

Executive Leadership

Sales

Business Development

Research & Development

Product Development

Client Services

Technical Operations

Professional Services

Investment Banking

Consulting

Engineering

Account Management

Senior Management

Scientific Research

Strategic Planning

Relevant Roles

Chief Executive Officer

Chief Technology Officer

Senior Software Engineer

Sales Director

Account Executive

Research Scientist

Product Manager

Business Development Manager

Senior Consultant

Technical Lead

Investment Banker

Regional Sales Manager

Chief Financial Officer

Operations Director

Senior Project Manager

Head of Research

Client Relations Manager

Principal Engineer

Managing Director

Vice President of Sales

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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