FROM THE NCHR HOTLINE - NON-COMPETE CLAUSES ARE DIFFICULT TO ENFORCE

Part 1:
NCHR has received a number of calls recently from organizations inquiring about how to protect themselves from former employees who poach their clients as they begin working with a competing firm.

This is a complicated area to address, largely because typical Non-Compete clauses are very difficult to enforce, as society generally prevents us from restricting the average employee’s right to earn a living, or from joining a competitor in your industry.

Perhaps a better approach is to also implement a Non-Solicitation clause to discourage your former employee from pursuing customers (and prospective customers) they dealt with while in your employ.
 
If the restrictive terms are reasonable, this can be a more effective method of protecting your organization, and is generally easier to prove.  That said, the savvy former employee will cover their tracks well to ensure no evidence of their solicitation efforts exist, so enforcing a Non-Solicitation clause is not without its challenges.

In our next e-newsletter we will look at some of the latest creative strategies organizations have implemented, which appear to be improving the outlook in this area for employers.

 
INTERESTING RESULTS FROM RECENT MINISTRY OF LABOUR AUDITS

The Ministry of Labour conducted an inspection blitz last September and October of workplaces with previous Employment Standard Act violations.  The blitz primarily focused on sectors such as building services, professional services, amusement and recreation industries, personal care services and other sectors with repeat violators.

Of the 104 total inspections of workplaces with past Employment Standards Act violations, only 27 were compliant during this blitz.

The most common violations, resulting in Compliance Orders, Notices of Contravention, tickets (fines), or Orders to pay wages, were in the following areas:

• Public Holidays
• Overtime
• Vacation with Pay
• Hours of Work
• Record-Keeping

If you have questions about how to appropriately navigate any of these areas for your organization, please give us a call.

Contact us for more information:  info@nchr.ca -  905-818-NCHR -  http://www.nchr.ca
 
This e-newsletter from NCHR Consulting & Recruitment Services contains important information about HR related legislative updates and other best practice suggestions and lessons learned, to help you better manage your business and employee situations.    

NCHR e-newsletter: Twelfth Edition