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Legal Ease
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Category: Canada Law
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Experience:  Lawyer
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I have a non compete agreement with my current employer. My

Customer Question

I have a non compete agreement with my current employer. My company was recently sold through an asset purchase. If I choose not to accept the new employment offer from the new buyer, am I still bound by the non compete?
Submitted: 7 months ago.
Category: Canada Law
Expert:  Legal Ease replied 7 months ago.

No you are not because the contract was with your employer and not the buyer.

And the employer was not a corporation and even if it was the new owner didn't buy the shares but just the assets.

Does that answer your question?

Customer: replied 7 months ago.
My Employment contract was with XYZ company. This company had several divisions and the one division I worked for (XXX company) was the one that was sold. In this situation, is my non compete still enforceable by XYZ?
Customer: replied 7 months ago.
My employer was a corporation
Customer: replied 7 months ago.
The new company that purchased the assets of XXX company is offering me the same wages and benefits as I received prior to the sale.I got this from a web site. "If the employee declines an offer of comparable employment from the purchaser, he or she has failed to mitigate and in any claim for damages at common law damages will be limited or not awarded. In some provinces, such as Ontario, employees have the right to refuse an offer of employment from the purchaser and still receive their statutory termination and severance pay"
Expert:  Legal Ease replied 7 months ago.

There are two questions here.

First, in terms of the non-compete, it can be enforce by XYZ.

Second, in terms of termination pay at the least you would be entitled to pay pursuant to the Employment Standards Act but in many cases you would be entitled to reasonable termination pay (or notice) if the job is not going to be comparable or if the new employer is not going to recognize your years of service with the old employer.

Customer: replied 7 months ago.
I don't want to accept the offer and instead want to work with the competitor. We were asked to sign a non compete and non solicitation a couple years ago specifically restricting me to work for this competitor. I want to make sure they will not come after me to enforce the non compete
Expert:  Legal Ease replied 7 months ago.

But XYZ can come after you given that you signed the contract with them.

Customer: replied 7 months ago.
The signing officer on my employment agreement was the GM of the division I was working for at the time. I do not believe he was a signing officer for the parent XYZ company. Does this make this agreement non binding if in fact he was not a signing officer of the XYZ parent company?
Expert:  Legal Ease replied 7 months ago.

So you are going to be bound by the contract.

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