Breach of Fiduciary Duty and Non-Compete Disputes
Breach Of Fiduciary Duty
Certain employees owe their employer a higher degree of loyalty than a regular employee. This increased duty of loyalty is called a fiduciary duty.
Whether a fiduciary duty exists depends largely on the facts. The higher an employee’s position in the company, the more likely he or she would be found to have a fiduciary duty to the employer. Other relevant questions include the authority of the employee, and how much trust, reliance and dependence the employer placed in the employee.
An employee who has a fiduciary duty to their employer has several obligations to their employer both during and after their employment. For example, throughout their employment, fiduciaries have an obligation to share with their employer any information that could be reasonably expected to impact the company’s business interests. In addition, fiduciaries cannot compete with or solicit their former employer’s clients for a reasonable time after the employment relationship ends.
Our employment lawyers can assist you determine whether you owe a fiduciary duty to your employer, or whether employees have a fiduciary duty to you. We can also assist if you are involved in a dispute involving fiduciary duty issues. Please contact one of DSF’s employment lawyers for more information.
Non-Competition and Non-Solicitation
To protect their interests after an employment relationship ends, employers should include non-competition and non-solicitation clauses in their employment contracts.
A non-competition clause would prevent an employee from working for a competitor after their employment ends for a period of time. A non-solicitation clause would prohibit an employee from contacting their former employer’s clients to persuade the clients to give their business to the former employee. Employees should ensure that they understand the significance and enforceability of these clauses.
For employers seeking assistance in drafting non-competition and non-solicitation clauses which will be upheld by the courts, for employees seeking advice about how these clauses may affect your post-employment activities, or for assistance with litigation involving non-competition and non-solicitation clauses, please contact one of the employment lawyers at DSF.
We have three locations to serve you:
Toronto law offices are conveniently located in the Lawrence and Don Mills area at 95 Barber Greene Road, Suite 100;
Whitby offices are located in the heart of downtown Whitby at 209 Dundas Street East, Suite 401;
Barrie offices are located downtown Barrie at 85 Bayfield Street, 3rd Floor.
We have plenty of free parking in all three locations.
For further information or assistance regarding breach of fiduciary duty or non-compete disputes , please contact one of the employment lawyers listed on the right by clicking on their name.