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![]() Éducaloi is a non-profit organization whose mission is to inform Quebecers of their rights and obligations by providing quality legal information in everyday language.
La loi vos droits
Clientele : Employees
Subject : Going to Work for a Competitor
Print date : May 22nd, 2012
Employees
Mark owns a printing company. His best salesperson, Michelle, announced that she is quitting her job and is going to work for another printing company. Mark wants to know if Michelle is allowed to go work for his competitor and what it will mean for his business. Mark is especially worried that Michelle will take information about his customers with her when she leaves.
In this Infosheet, Éducaloi examines whether a former employee must be loyal to her former employer and the stricter rules that apply if a non-competition agreement was signed.
The law in Quebec requires an employee to be loyal towards her employer while she is employed and to a certain extent, after she has left her job.
The employee must:
Once an employee has stopped working for her employer she must continue to act with loyalty toward him regardless of the industry she worked in or the position she held in the company. If the former employee had a managerial or senior position within the company, her duty to be loyal will be even stronger. A former employee must be loyal even if she did not sign anything saying that she would act in a certain way when she leaves her job.
Yes. You must remain loyal to your former employer even if you quit or were fired.
No. Being loyal means not using confidential information that belongs to your former employer in your new job.
Confidential information belonging to your former employer that you cannot use includes:
You can, however, use skills you learned in your old job. For example, Michelle cannot use the list of client e-mail addresses she secretly copied to a USB key from her office computer on her last day at Mark's printing company. These client e-mail addresses are private and belong to Mark's company. If she uses this information in her new job, it would give her new company an unfair advantage. On top of this, it could even damage Mark's company by taking business away from him. Michelle can, however, find new clients using the Internet research skills she perfected while working for Mark.
Yes, your employer can limit your freedom to work for a competitor. He can do this by including this restriction in your employment contract or by having you sign a separate document. This is called a "non-competition agreement".
This type of agreement establishes how you will be able to compete with your former employer's business once you leave your job. By signing this document, you are agreeing to:
No. Your non-competition agreement must be reasonable to be valid. Your former employer can't prevent you from working in the same industry or the same city ever again!
If your ex-employer sues you for violating the non-competition agreement, it will be up to him to show the court that the agreement respects the following guidelines:
If a court is asked to determine if a non-competition agreement is reasonable, it will take these factors into account:
A court will not rewrite the agreement: it will either confirm that it is valid or cancel it.
It depends. Each employee's situation is different so it will depend on:
Here are some possible scenarios: You did not sign a non-competition agreement with your former employer:
You signed an agreement not to compete with your former employer:
It depends. Certain aspects of your duty to be loyal to your former employer last longer than others. Also, if you have signed a non-competition agreement, it may require you to act with loyalty for a longer period of time than the general obligation of loyalty that all employees must follow.
How long do I have to keep information confidential? It depends on what type of information you had access to:
How long will I have to avoid conflicts of interest with my former employer?
If you do not act with loyalty or do not respect the conditions set out in your non-competition agreement, your former employer might sue you.
He can ask the court to order you to stop doing whatever it is that violates the non-competition agreement. He may also ask for financial compensation if your activities harmed his business. If you find yourself in this type of situation, it can be helpful to speak with a legal professional.
Éducaloi does not provide any legal advice or counseling. The information contained in its website constitutes a general source of information and does not in any way replace the services of a lawyer or notary.
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