Does my non-compete clause apply if i am dismissed?

Verified 31 July 2026 Law of Quebec and Canada General information, not legal advice

Short answer

In Quebec, an employer cannot rely on a non-competition clause if it terminated the contract without a serious reason, or if the employer itself gave the employee a reason to terminate it (art. 2095 of the Civil Code of Québec).

In detail

The non-competition clause must first be valid. Article 2089 requires that it be in writing and in express terms, and that it be limited as to time, place and type of work, to what is necessary to protect the legitimate interests of the employer. It is up to the employer to prove that the clause is valid.

Article 2095 adds a separate protection: even a valid clause becomes unenforceable if the employer ends the employment without a serious reason. A “serious reason” is not simply a restructuring or a general dissatisfaction: the concept refers to serious misconduct.

An important nuance applies where the clause forms part of the sale of a business between parties of equal bargaining power. The Supreme Court held, in Payette v. Guay inc. (2013), that article 2089 para. 3 and article 2095 do not apply in that commercial context.

What to document

The signed contract and the exact clause, its scope in terms of duration, territory and type of work, the date and the reason for the end of the employment, the dismissal letter, and any formal demand you received from the former employer. The precise wording of the clause and the written reason for the dismissal are the two decisive documents.

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Does my non-compete clause apply if i am dismissed?

In detail

What to document

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