POST-EMPLOYMENT COMPETITION - CANAERO REVISITED

Authors

  • PETER C WARDLE

Abstract

In the sixteen years since the Supreme Court of Canada's decision in Canadian Aero Services Ltd. v. O'Malley, the emerging law of fiduciaries has become one of the most significant trends in Canadian law. An important illustration of this trend is provided by the large volume of case-law which has developed concerning the obligations of departing employees to their former employers, particularly in regard to solicitation of customers. This article examines the development of the Canadian law in this area from its genesis in the late nineteenth century to today, concluding that its evolution since Canaero has been unsatisfactory and must be reconsidered. It recommends that fiduciary relationships should be limited to employees who exercise a significant degree of power and control over a company's operations, and that the scope of the obligation not extend to blanket solicitation. of customers after departure, but depend on the nature, specificity and ripeness of the customer base, the knowledge held by the departing employee, and the type ofsolicitation.

Keywords:

Labour Law

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Published

1990-06-01

Issue

Section

Case Comment