Labour law: the dismissal of an employee for his refusal to sign a non-competition clause

The Court of Appeal recently had to decide the question of whether an employer may dismiss an employee on the grounds that he refuses to sign a non-competition clause. In this case, the employee, hired in 2002, had to sign a non-competition clause when he started to work for the employer but they only asked him to sign such a clause three years later. The clause was for a period of 12 months and extended around the world. The employee refused to sign this clause unless his employer offered him a financial compensation. Because he refused to sign the clause, he was fired. The Court raised a doubt on the validity of the non-competition clause which shall be limited as to time, territory and type of work. By considering the employee's refusal to sign a non-competition clause whose validity was questionable on its face since it extended all over the world, the Court concludes that the refusal to sign this clause could not constitute a good and sufficient cause of dismissal. (Patrick Jean c. OmegaChem inc., 2012 QCCA 232). Dubé Légal inc., Montreal labour law lawyers.