Investigating Breach of Non-Competition Clause: How Investigators Can Assist

Investigating Breach of Non-Competition Clause: How Investigators Can Assist

Non-competition clauses, also known as non-compete agreements, are contractual agreements between an employer and an employee that restrict the employee's ability to work for competitors or start a competing business for a specified period after leaving the current company. These clauses are designed to protect the employer's trade secrets, confidential information, and client base.  In Ontario, since December 2021, non-competition agreements against employees are not enforceable under the Employment Standards Act, 2000 (Ontario), except if the employee has sold or leased the business to the employer or if the employee holds an executive position such as president or any chief executive position. 

When such employee violates these agreements, it can have serious consequences for the employer. In such cases, professional investigators play a crucial role in uncovering evidence of breach and assisting employers in pursuing legal remedies.

The Importance of Investigating Non-Competition Clause Breach

Non-competition clauses are becoming increasingly common in various industries. When an employer suspects that a former employee may have violated the non-compete agreement, it is essential to investigate the matter thoroughly. Investigations are necessary to gather evidence, identify the extent of the breach, and evaluate the potential damages caused. Without proper investigation, the employer may find it challenging to pursue legal action or protect their business interests effectively.

Role of Investigators in Non-Competition Clause Investigations

Data Collection: Experienced investigators are skilled at collecting relevant data and evidence related to the suspected breach. This may include reviewing employment contracts, non-compete agreements, and any other relevant documents. Investigators may also conduct interviews with current and former employees to gather additional information.

Digital Forensics: In today's digital age, a significant amount of evidence can be found in electronic form. Investigators are equipped to perform digital forensics to uncover any unauthorized use or sharing of proprietary information, trade secrets, or client databases. They can analyze email communications, access logs, and computer systems to trace the flow of sensitive data.

Surveillance: In cases where a former employee is suspected of actively working for a competitor, investigators can conduct surveillance to monitor their activities and gather evidence of their involvement in competing activities. This may include documenting meetings, communications, and any other actions that may violate the non-compete agreement.

Background Checks: Investigators can conduct thorough background checks on the former employee and the competitor company to identify any potential connections or suspicious activities. This can provide valuable insights into the scope of the breach and any collusion that may have occurred.

Witness Identification: Investigators are skilled at locating and interviewing witnesses who can provide crucial information regarding the alleged breach. This may include current or former employees, clients, or business partners who may have observed the former employee's actions.

Due Diligence: In some cases, it may be necessary to perform due diligence on the competitor company to ascertain its involvement in hiring the ex-employee in violation of the non-compete agreement. Investigators can help uncover any evidence of improper recruitment or solicitation.

Non-competition clauses are essential tools that protect employers' interests and investments in their businesses. When these agreements are breached, it can lead to significant financial losses and damage the employer's competitive advantage. Engaging professional investigators to handle non-compete clause investigations can be a wise decision for employers seeking to gather evidence, assess the extent of the breach, and pursue legal action if necessary. By employing investigative expertise, employers can safeguard their intellectual property, confidential information, and market position while upholding the integrity of their business relationships.

If you’re an organization in Toronto or the surrounding area and need assistance with investigating the potential breach of a non-complete clause, contact us! Our experienced team can provide you with a complimentary and 100% confidential consult.