In Alberta, a non-competition clause in an employment agreement can be enforceable—but only under strict conditions. Courts in Alberta (and generally across Canada) are cautious with these clauses because they restrict a person’s ability to earn a living. Here’s what makes a non-compete enforceable in Alberta:
1. Clear And Unambiguous Language
The clause must be written clearly, without vague or overly broad terms. Ambiguities usually get interpreted in favour of the employee.
2. Reasonable In Scope
This includes:
• Time: The restriction must be for a reasonable duration. Generally, anything longer than 6 to 12 months may be seen as too restrictive, depending on the role.
• Geography: The geographical area must be narrowly defined and reflect where the employer actually does business.
• Activity: It must only restrict the employee from competing in the specific type of business they were involved in.
3. Protecting A Legitimate Business Interest
The employer must show that the clause protects a valid interest—like trade secrets, proprietary information, or key client relationships. Non-competes aren’t enforceable just to limit competition.
4. Not Against Public Policy
If a non-compete unduly limits an individual’s ability to work or earn a living, Alberta courts will usually strike it down. Courts prefer non-solicitation clauses (which prevent poaching of clients or employees) because they are less restrictive.
5. Consideration
There must be something of value exchanged for the non-compete to be valid—typically, this is the job offer itself. But if the clause is introduced after employment starts, new consideration (like a promotion or bonus) is needed.
Bottom line: In Alberta, non-competes are enforceable only if they are reasonable, clear, and necessary to protect the employer’s legitimate interests. Courts tend to side with employees if the clause is too broad or restrictive.
*Always seek legal advice. The above is for information purposes only.
Stephen Dugandzic received his Juris Doctor degree from the University of Alberta in 2013 and is Calgary-based. He previously practised with Bennett Jones LLP and Taylor Janis LLP before founding YYC Employment Law Group in 2018 and Evolution Legal in 2026.