Non-Compete Clauses

What Is a Non-Compete Clause?

A non-compete clause is a provision that may be included in an employment contract that restricts an employee from working for a competitor or starting a competing business after the employment relationship ends.

These clauses typically limit where an employee can work, for how long, and in what type of role.

Because non-compete clauses restrict a person’s ability to earn a living, they are heavily scrutinized.

Are Non-Compete Clauses Enforceable in BC?

In British Columbia, non-compete clauses are presumptively unenforceable, unless the employer can demonstrate that the restriction is reasonable.

To be enforceable, a non-compete clause must:

·       Protect a legitimate business interest

·       Be no broader than necessary, meaning it must be:

o   Reasonable in geographic scope

o   Reasonable in duration

o   Reasonable in the scope of the restricted activities

·       Be clear and unambiguous

If the clause is overly broad in any of these areas, a court will likely strike it down. Courts will also consider whether a less restrictive clause, such as a non-solicitation clause, would have been sufficient to protect the employer’s interests.

Difference Between Non-Compete and Non-Solicitation Clause

A non-compete clause prevents an employee from working for a competitor or operating a competing business.

A non-solicitation clause, by contrast, only prevents the employee from soliciting the employer’s clients, customers or employees.

Non-solicitation clauses are generally more likely to be enforceable because they are more narrowly tailored.

Should You Sign a Non-Compete Clause?

Employees should carefully review any non-compete clause before signing. These clauses can significantly restrict future employment opportunities.

Employers should ensure that any non-compete clause is narrowly drafted and supported by a legitimate business interest. Overly broad clauses are often unenforceable and may provide a false sense of protection.

For both employers and employees, restrictive covenants can have serious legal and financial consequences. We strongly recommend you seek legal advice before signing or attempting to enforce a non-compete clause.

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Written by Nataya Smetaniuk, Albert & Co. Law LLP, February 17th, 2026.

© Albert & Co. Law LLP. The contents of this article do not constitute legal advice. Readers should seek legal advice in relation to their own specific circumstances.