My boss wants to everyone in the warehouse sign a new contract which the main point is a No Compete Agreement. But the contract says that (fired or not, voluntary retirement or whatever happened) if the employee stops to work in the company, he cannot work with the competence or another company in a related field in Canada or USA (for 2 years).
The issue is that our boss is sort of neurotic and he usually fire employees for no reason.
We are afraid that if we sing this agreement, eventually one day our boss will fire us and we cannot work for another company related to the sector.
What do we can do.?
A non compete is enforceable under certain conditions. It must be reasonable as to time, geographic location, and serve to protect a legitimate trade secret or other intellectual property interest. Before signing the agreement, you should consult with an attorney to discuss the terms.
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I cannot imagine why someone who works in a warehouse would be asked to sign a non-compete contract unless they are privy to some kind of trade secret or there is another warehouse across the street. Two years in the US and Canada is extremely broad considering the circumstances. . It probably is not enforceable but I would talk to an employment attorney before I signed something. If there is a group of people with this concern it would not cost very much to get some legal advice.
I agree with what the others have said. This agreement sounds like it is not enforceable. It also sounds like the employer/boss is grossly overreaching. Should you sign this? From the way you describe it, I have the sneaking suspicion that your boss is planning on using this as a way to gain more power over the employees. I would try to change jobs.
The employer can condition your continued employment on signing this. Before you resist too much, have it reviewed by an attorney. I am hard pressed what business necessity a business would have in restricting the work of a warehouse worker. Yes, they are enforceable, but the employer seeking to enforce has to prove certain essential elements before a court will restrict an employee. Hope this helps.
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