Your contract says you can't work for a competitor. It probably can't stop you.
Since October 2021, Ontario has banned most non-compete clauses. If you signed one at a regular job, it is likely void — you may be free to take that new role. Here is what is actually true.
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In 30 seconds, here's what's true
- Since October 25, 2021, it is against the law in Ontario for an employer to put a non-compete clause in a job contract. If they do, that clause has no force.
- A non-compete is a term that tries to stop you from working for a competitor, or starting a competing business, after you leave. Banning that is now the default rule.
- This is not the same as a non-solicit clause (do not poach clients or coworkers) or an NDA (keep secrets). Those are still allowed — only the non-compete is banned.
- Two narrow exceptions remain: senior executives (people who hold a chief-officer office like CEO or CFO), and someone who sold their business and stayed on as an employee.
- A non-compete you signed before October 25, 2021 is not automatically void — but a court will still refuse to enforce one that is unclear or wider than needed.
How the process works
Find the exact clause in your contract
Look through your employment contract, offer letter, or any agreement you signed for wording about not competing, not working for a rival, or not starting a similar business after you leave. That is the non-compete. Copy it out word for word.
Check the date you signed it
The Ontario ban applies to agreements made on or after October 25, 2021. If you signed on or after that date at a regular job, the non-compete is almost certainly void. If you signed before that date, the ban does not erase it, but older court rules still apply.
See if a rare exception fits you
Ask two questions. Were you a true executive — holding an office like CEO, president, or CFO — when you signed? Did you sign as part of selling your own business and then stay on as an employee? If neither is true, no exception applies to you.
Do not quit or breach blindly
A void clause cannot be used against you, but the safe move is to confirm that before you act. Your old employer might still send a warning letter. Knowing the clause is unenforceable — and having it checked — puts you in a strong position.
Get help or report a banned clause
A community legal clinic or an employment lawyer can confirm where you stand, often with a free first consult. If an employer tried to make you sign a banned non-compete, you can also contact the Ministry of Labour's Employment Standards line at 1-800-531-5551.
What to do next
- Find every agreement you signed: the contract, the offer letter, and any later document with a non-compete.
- Write down the exact date you signed each one — before or after October 25, 2021 changes a lot.
- Read the clause closely: does it stop you from competing, or only from taking clients (non-solicit) or sharing secrets (NDA)?
- Ask whether you held a real chief-officer office when you signed — not just a senior-sounding title.
- Ask whether you signed it as part of selling a business you owned.
- Do not sign a new non-compete an employer hands you — for most jobs, they are not allowed to ask.
- Keep any letter or email where an old employer threatens to enforce a non-compete.
- Get free advice before you turn down a job or start a new one: a legal clinic, a lawyer's free consult, or the Ministry of Labour.
Common myths
| Myth | Reality |
|---|---|
| I signed it, so I'm stuck with it. | Not for most jobs. Since October 25, 2021, Ontario bans non-compete clauses in employment. A banned clause has no force, even with your signature on it. |
| A non-compete and an NDA are the same thing. | They are not. An NDA (keeping secrets) and a non-solicit (not poaching clients or coworkers) are still allowed. Only the non-compete — blocking you from competing — is banned. |
| The ban means my employer can never protect its business. | It still can. Employers can use non-solicit clauses, confidentiality agreements, and trade-secret law. They just cannot stop you from earning a living at a competitor. |
| The ban only covers Ontario companies, so an out-of-province employer can still use one. | What matters is that your job is covered by Ontario's Employment Standards Act. If the ESA applies to your work, the non-compete ban applies. |
| It applies to any manager or senior person. | No. The executive exception is narrow. It covers people who actually hold a chief-officer office — like CEO, president, or CFO — not everyone with a senior title. |
| My non-compete is from 2019, so the ban wipes it out too. | The ban is not retroactive. A clause signed before October 25, 2021 still stands or falls under the older common-law test — which already struck down clauses that were unclear or too broad. |
| An older non-compete must be valid because it isn't banned. | No. Even older non-competes are only enforceable if they are clear, reasonable in time and area, and no wider than needed. Ontario courts often refuse to enforce them. |
| Signing a banned non-compete means I broke a law. | No. The rule limits what employers can require, not what employees can do. If a clause is banned, it simply cannot be used against you — you did nothing wrong by signing. |
Last reviewed July 2026
Written and reviewed by the founder of PLAIN, checked against primary government and legal sources. How we research these guides
Sources
PLAIN gives legal information, not legal advice. It is not a substitute for a lawyer or paralegal — and we'll point you to free ones. Laws change; we review these pages regularly, but always confirm current rules with the Ministry of Labour or a licensed professional.
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