In New Brunswick, courts generally view non-compete clauses as an illegal “restraint of trade.” To successfully enforce one, your former employer must prove in the Court of King’s Bench that the clause is absolutely necessary to protect their business, and that it is strictly limited in duration, geographic scope, and the type of work prohibited.
Moving on to a better career opportunity is an exciting moment. However, discovering that your former employer intends to enforce a non-compete clause can bring your momentum to a crashing halt. Whether you are a specialized engineer in Edmundston, a sales executive in Moncton, or an IT professional in Fredericton, being told you cannot work in your chosen field is incredibly stressful.
Many employees sign employment contracts without realizing the severe restrictions hidden in the fine print. Fortunately, under Canadian common law, just because you signed a non-compete does not automatically mean it is legally enforceable. The New Brunswick courts heavily favour an individual’s right to earn a living, and challenging these restrictive covenants is a highly common legal practice. 📍
Step-by-Step Process in New Brunswick
Challenging a non-compete clause rarely means jumping straight into a courtroom. It begins with a careful legal analysis of the exact wording of your contract to identify its flaws.
Step 1: Analyze the Scope of the Restriction
New Brunswick judges look for any sign that a non-compete is overly broad. Carefully read your contract and look at three specific factors: geography, duration, and scope of activities.
If the clause says you cannot work anywhere in “Canada” for “five years” in “any sales role,” it is almost certainly legally void. Courts require the restriction to be narrow-such as applying only within a 20-kilometre radius of Saint John for a maximum of 6 to 12 months.
Step 2: Consider the “Non-Solicit” Alternative
Courts will generally refuse to enforce a non-compete if a lesser restriction, like a “non-solicitation clause,” would have been enough to protect the employer. 💼
A non-solicit simply stops you from poaching your old clients or colleagues, but still allows you to work for a competitor. If your employer simply wants to protect their client list, a judge will likely rule that a total ban on your employment (a non-compete) is unreasonably harsh and completely strike it down.
Step 3: Review the Nature of Your Departure
How you left the company heavily influences the enforceability of the clause.
If your employer terminated you “without cause,” it is incredibly difficult for them to subsequently enforce a non-compete against you. By breaking the employment relationship themselves, they generally forfeit the right to dictate where you work next. If you resigned, the clause is subjected to the standard reasonableness test.
Step 4: Consult a New Brunswick Employment Lawyer
Do not simply ignore a threatening letter from your former employer. You must seek professional legal advice. 📝
A corporate or employment law firm can draft a formal response letter to your ex-employer, pointing out the legal ambiguities in the clause and citing New Brunswick case law. In many cases, a strong letter from a lawyer is enough to make the employer back down and avoid filing for a court injunction.
How Much Does it Cost in New Brunswick?
Dealing with restrictive covenants involves weighing the cost of legal fees against the value of your new job offer.
| Legal Action | Estimated Cost (CAD) | Description |
|---|---|---|
| Initial Contract Review | $300 – $600 | Hiring a lawyer to review your non-compete and advise if it is legally enforceable. |
| Cease & Desist Response | $500 – $1,500 | Lawyer drafting a formal legal letter pushing back against your former employer’s threats. |
| Court Injunction Defense | $5,000 – $20,000+ | If the employer actually sues to stop you from working, defending yourself in the Court of King’s Bench is expensive. |
- Blue-Pencilling: In Canada, judges will not re-write a bad contract for an employer (known as “notional severance”). If one part of the non-compete is unreasonable, the entire clause is thrown in the trash.
- Shareholder Agreements: Historically, courts were more likely to enforce non-competes in shareholder agreements. However, following the landmark New Brunswick decision Le Groupe Roy Consultants v Louis Ruest and Alain Carrier (November 17, 2025), the Court of King’s Bench confirmed that shareholder status does not override employment reality. For minority employee-shareholders who are not part of senior management or the board, non-competes inside shareholder agreements are evaluated under strict, employee-friendly standards and will be struck down if they are overly restrictive.
How Long Does the Process Take?
Time is of the essence when your livelihood is on the line. Getting an initial legal opinion from a lawyer usually takes only 2 to 5 business days.
If your former employer decides to aggressively enforce the clause, they will file for an “interlocutory injunction” at the Court of King’s Bench to temporarily stop you from working. Securing a hearing for an injunction can take 2 to 6 weeks. If the dispute escalates to a full civil trial for damages, the legal process can drag on for 1 to 2 years.
Frequently Asked Questions (FAQ)
Are non-competes completely illegal in Canada?
While Ontario has banned most non-competes, New Brunswick still relies on common law, making them presumed invalid but not strictly illegal. However, a major federal change is coming: on May 6, 2026, the Canadian government introduced Bill C-31 (Budget 2025 Implementation Act, No. 2), which amends the Canada Labour Code to completely ban new and existing non-competes for all employees in federally regulated sectors (such as telecommunications, banking, airlines, and railways).
What happens if I just ignore the non-compete?
If the clause is well-drafted and you ignore it, your former employer can sue you for financial damages. They can also seek a court injunction to legally force you to quit your new job. Never ignore legal threats without consulting a lawyer.
Will my new employer be sued?
Yes, it is highly possible. Former employers often sue the new employer for “inducing breach of contract.” This is why you should always be honest with a prospective employer about any non-competes you signed in the past.
Does getting fired void my non-compete?
Generally, yes. If an employer terminates you without cause, courts usually view this as a repudiation of the employment contract, rendering the restrictive covenants within it unenforceable.
What is the difference between a non-compete and a non-solicit?
A non-compete stops you from working in the same industry or for a competitor altogether. A non-solicitation clause allows you to work for the competitor, but strictly forbids you from actively reaching out to your former employer’s clients or staff to bring them over.
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