I quit as a subcontractor and was told not to contact clients or colleagues. Is this legal? - The Globe and Mail


AI Summary Hide AI Generated Summary

Question

A subcontractor quit their cleaning job after seven months and was prohibited by their former employer from contacting clients, colleagues, or speaking negatively about the company. They did not sign an agreement with these restrictions.

Legal Opinions

Two lawyers provided opinions stating that the company's demands are likely unenforceable without a signed agreement with restrictive covenants such as non-disclosure, non-solicitation, or non-disparagement clauses. As an independent contractor, the former employee's obligations are governed by the terms of their contract, with no implied restrictions on communication after the engagement ends.

  • They are free to communicate with former colleagues.
  • There are no legal restrictions on expressing truthful opinions; defamation requires proof of falsehood and harm, with truth serving as a complete defense. It is recommended to ensure comments are factual and avoid exaggeration or malicious intent.
  • The company’s threats are baseless without a signed agreement. It's recommended to keep relevant correspondence.

The lawyers emphasize that restrictive covenants, like prohibitions on contacting employees or clients, must be reasonable and tied to legitimate business interests to be enforceable in jurisdictions like Ontario. No such clause existed in this case. The former employee is legally permitted to maintain relationships with former colleagues and clients, provided they don't misuse confidential information or solicit business in breach of contract (which was not agreed upon).

Expressing dissatisfaction is permissible if statements are accurate and not malicious. The company's attempt to silence criticism is unenforceable and may be an attempt to chill lawful expression. If further threats are made, seeking legal advice is recommended.

Sign in to unlock more AI features Sign in with Google

Interested in more careers-related content? Check out our new weekly Work Life newsletter. Sent every Monday afternoon.

THE QUESTION

I had been working as a cleaner for seven months as a subcontractor. I recently quit and the company sent me an e-mail saying that I was not allowed to talk to any employee, subcontractor or clients I cleaned for, and that I couldn’t say anything negative about the company. Otherwise, they would start legal proceedings against me. I never signed anything to agree to this. I don’t plan on taking any of their clients. But I’m friends with the other cleaners. I did not have a positive experience with this company, so if someone asked about it, I want to be honest. What should I do?

THE FIRST ANSWER

Tong Jun (Roger) Zhang, principal and managing Lawyer, TZ Law, Calgary

The company’s demands are unlikely to be enforceable in the absence of a signed agreement containing restrictive covenants such as non-disclosure, non-solicitation or non-disparagement clauses. As an independent contractor, your obligations are governed by the terms of your contract and no implied restrictions apply to your communications after the engagement ends.

You are free to communicate and maintain personal relationships with your former colleagues. With respect to sharing your experience, there are no legal restrictions on your ability to express truthful opinions. The burden of proof for defamation lies with the company; defamation law in most Canadian jurisdictions requires the company to prove that any statements you make are false and harmful to succeed in a claim, as truth serves as a complete defence. The best practice is to ensure your comments are factual and to avoid exaggeration or malicious intent.

The company’s threats of legal action lack a substantive basis without a signed agreement. However, to mitigate risk, I recommend retaining all relevant correspondence in your records, including the email in question. If the company pursues further action, consulting a lawyer in your province would be prudent to address any jurisdictional nuances.

THE SECOND ANSWER

Tareq Shahwan, associate lawyer, Randy Ai Law Office, Toronto

Without a written and enforceable agreement establishing restrictions in regards to your post-employment, such as non-solicitation and/or non-disparagement clauses, the company’s demands carry little to no legal weight. As a subcontractor, you were not an employee and owe no continuing duty of loyalty or confidentiality beyond what was expressly agreed at the outset of your business relationship. That said, subcontractors are expected to perform their work in good faith while the contract is in force.

In Ontario, restrictive covenants – like prohibitions on contacting employees or clients – must be reasonable in scope and tied to a legitimate business interest to be enforceable. No such clause was signed here. You are legally permitted to maintain personal or professional relationships with former colleagues and clients, provided you are not misusing confidential information or actively soliciting business in breach of contract, which, again, you never agreed to.

As for speaking about your experience, Canadian defamation law protects truthful statements and fair comment based on fact. You are entitled to express dissatisfaction, provided your statements are accurate and not malicious. The company’s attempt to silence criticism without a contractual basis is not enforceable and may amount to an attempt to chill your lawful expression.

While the threat of legal proceedings may be intimidating, the absence of any contractual restraint or defamatory conduct on your part means their position is unlikely to succeed in court. If further threats are made, you can seek legal advice from a licensed lawyer in the province where you live.

Have a question for our experts? Send an e-mail to NineToFive@globeandmail.com with ‘Nine to Five’ in the subject line. Emails without the correct subject line may not be answered.

Was this article displayed correctly? Not happy with what you see?

We located an Open Access version of this article, legally shared by the author or publisher. Open It
Tabs Reminder: Tabs piling up in your browser? Set a reminder for them, close them and get notified at the right time.

Try our Chrome extension today!


Share this article with your
friends and colleagues.
Earn points from views and
referrals who sign up.
Learn more

Facebook

Save articles to reading lists
and access them on any device


Share this article with your
friends and colleagues.
Earn points from views and
referrals who sign up.
Learn more

Facebook

Save articles to reading lists
and access them on any device