Typically non-competition clauses are considered to be unreasonable restraints on trade and unenforceable.
However, in the case of Rawlco Radio Ltd. v. Lozinski, 2012 SKQB 460,
The court found that Lozinski had learned Rawlco’s marketing strategy and developed important personal contacts with Rawlco’s clients over his many years and to many of these clients, Lozinski was the face of the company. To allow him to develop a similar strategy to obtain business in direct competition with his former employer would result in major losses and irreparable harm to the radio station. The non-competition clause was therefore reasonable and an injunction was the appropriate remedy.
In the case above the non-compete was enforced because the court found the clause to be drafted in a reasonable and unambiguous way.
Contact us if you are need any help dealing employment issues.
