Restrictive Covenants in the Commercial Context: Payette v. Guay Inc.,...
n Payette v. Guay Inc. 2013 SCC 45, the Supreme Court of Canada distinguished between the interpretation of a restrictive covenant negotiated in the sale of a business and one found in an employment contract. In the commercial context, a restrictive covenant is lawful unless it can be established by the employee/vendor that its scope is unreasonable. In contrast, a restrictive covenant in an employment contract is presumed to be unenforceable unless the employer can establish it is reasonable in the circumstances.