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Draft covenants with care

Thursday, March 02, 2017 @ 7:00 PM | By Jill Lewis

The case of Donaldson Travel Inc. v. Murphy 2016 ONCA 649 has been added to the long list of cautionary tales for employers who are drafting restrictive covenants in employment contracts. In Donaldson Travel, the Ontario Court of Appeal confirmed that an employee’s non-solicitation clause should be characterized as a non-competition clause due to three small words: “or accept business.”

The case involved Mary Murphy, a travel agent for Donaldson Travel Inc. (Donaldson) who resigned from Donaldson and commenced employment as a travel agent with its...