Employers Must Update Contracts as 2021 Ontario Non-Compete Ban Raises Legal Risk
Updated
Updated · Ottawa Business Journal · May 12
Employers Must Update Contracts as 2021 Ontario Non-Compete Ban Raises Legal Risk
1 articles · Updated · Ottawa Business Journal · May 12
Regular reviews of employment agreements are a legal necessity because clauses can become partly or fully unenforceable as laws, court rulings and business roles change.
2021 amendments to Ontario’s Employment Standards Act, which largely banned non-compete clauses, illustrate how legislative shifts can quickly invalidate once-standard contract terms.
Fresh consideration is the biggest trap in contract updates: employers must offer something new—such as higher pay, a bonus or extra vacation—because continued employment alone is not enough.
Unilateral changes to core terms like compensation, location or duties can also trigger constructive dismissal claims, even when extra pay is offered, if employees do not clearly accept the new terms.
Yazdani said employers should present revisions as offers, give staff time to review them and secure explicit acceptance to reduce disputes and severance or damages exposure.
Why is a small bonus for a contract update not just a perk, but a crucial legal shield for employers?
Could years of promotions and new duties mean your original employment contract is now completely unenforceable?
As state laws replace the failed federal non-compete ban, which alternatives can actually protect your business secrets?