From non-competes to the right to disconnect – employment law changes set to rock 2022
Bill 27, or the Working for Workers Act, will debated and potentially passed in the New Year. The two main components of this bill that employers are keeping an eye on are the elimination of individual contracts of employment - permitting a non-competition restriction amongst employees - and the right to disconnect. Both have the propensity to change the landscape of employment law in Canada – for both organizations and their people. HRD spoke to Michael Horvat, partner at Aird & Berlis, who talked us through some of the finer points of the proposed bill – and what it’s passing could mean for Canadian leaders.
“The non-competition provision is pretty simple and direct,” he explained. “It's an amendment to the Employment Standards Act, which would prohibit an employer from entering into an employment contract or other agreement with an employee. That includes a non-compete agreement. The only exception would be in the case of a sale of a business - where the person who's selling the business is also themselves an employee and can't continue working in the new organization.”
Now whilst this is a very important change - it could also be overblown. No one as yet knows the full details or outreaching implications the bill could have. And besides, as Horvat told HRD, it's already very expensive and difficult to enforce non-competition restrictions in Ontario.
“As...
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