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Maverick, Lawyer
Category: Employment Law
Satisfied Customers: 5735
Experience:  20 years professional experience
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I signed a 24 month non-compete with a start up Canadian

Customer Question

I signed a 24 month non-compete with a start up Canadian company under my legal name. At the time they had promised me a salary of $70K plus 4% commission. 9 months later they decided to cut my salary completely and increase my commission rate to 8%, I did not sign any documents, at this time I incorporated under a business name. Well, 4 months later and I'm barely making any money. Would I still be liable if I broke my non-compete to work for a competitor?
Submitted: 1 month ago.
Category: Employment Law
Expert:  Maverick replied 1 month ago.

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Expert:  Maverick replied 1 month ago.

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Customer: replied 1 month ago.
No phone call is necessary at this moment
Expert:  Maverick replied 1 month ago.

If the salary and commission were in writing and they changed them mid-stream it appears to me that the company breached the contract and you then become excused from having to fulfill your end of the bargain unless somehow your new incorporated business is seen to have ratified the mid-stream change and seen to be a successor in interest to the personal contract you signed.

It is unclear whether the 8% contract was intended by the parties to be a new contract completely with a mutual agreement to terminate the old. If so, then you personally may not be held to the terms of the non-compete; but your newly incorporated company and its employees may be depending on the scope and terms of the non-compete in the 8% agreement.

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