A non-compete clause restricts where, how, or for whom an employee can work after leaving a job.

Non-compete clauses are rarely enforceable in BC employment contracts. While employers continue to include them, BC courts apply a very high legal standard, and most non-competes do not survive scrutiny.

This page explains how non-compete clauses work in British Columbia, when courts may enforce them, and why most fail.

What Is a Non-Compete Clause?

A non-compete clause attempts to prevent a former employee from:

• Working for a competing business
• Starting a competing company
• Working in the same industry or geographic area

These restrictions apply after employment ends, often for months or years.

Because non-compete clauses directly limit a person’s ability to earn a living, BC courts review them very closely.

Are Non-Compete Clauses Enforceable in BC?

In most cases, no.

BC courts enforce non-compete clauses only in exceptional circumstances. To be enforceable, a non-compete clause must be:

• Clearly and precisely drafted
• Limited in time, geographic area, and scope of activity
• Necessary to protect a legitimate business interest

If a clause goes further than necessary, courts will usually strike it entirely.

Why Do They Often Fail?

Non-compete clauses commonly fail because they:

• Are overly broad or vague
• Cover too large a geographic area
• Apply for an unreasonable length of time
• Attempt to restrict competition instead of protecting specific interests

Non-Compete vs....

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