In the Fall of 2021, Bill 27 Ontario Working for Workers Act prohibited the use of non-compete provisions as of October 25, 2021, except in narrow circumstances involving executives or in a sale of business context. However, the Act does not address the effect the prohibition would have on existing non-compete provisions (i.e., those signed prior to October 25, 2021).
In a recent decision, Parekh et al v Scheter et al, 2022 ONSC 302, Justice Sharma confirmed that a non-compete provision entered into before October 25, 2021, can be enforced in limited circumstances. For example, where an employer can establish that the non-compete provision is reasonable in the circumstance. In short, the Ontario Working for Workers Act cannot be retroactively applied to non-compete provisions.