The focus of this blog post will be non-compete clauses, which have become commonplace in a number of different employment relationships, from the high-tech world to fast food chains. The clauses are intended to restrict departing employees from accepting paid work in the same or similar sectors to that of their previous employer.
Startups and emerging companies are usually so focused on growing and scaling up that the thought of letting employees go is far from top of mind. However, it is important that employers and employees understand what employees are entitled to when they are terminated under the Ontario Employment Standards Act (“ESA”) and the common law.
Option agreements provide employees the right to purchase shares of the employer corporation at a specified price during the term of the agreement, and subject to specified “vesting” provisions and other conditions. ESOPs work by granting employees the opportunity to benefit from a higher future value of their company’s share price.
This post provides an overview of how employees and independent contractors are defined in the law, what the main differences are between these two types of workers, and the dangers of misclassifying workers.