In EF Institute for Cultural Exchange Limited v. WorldStrides Canada, Inc., the Court of Appeal for Ontario held that an employee had not breached his fiduciary duty to his former employer when he met with a future employer post-employment but during a one-year confidentiality and non-competition period. Nor, the court said, was it a breach of the employee’s fiduciary duty to have accepted employment during the one-year restricted period, with a start date one day after the non-competition period expired.
David Conklin was employed as the President of EF Institute for Cultural Exchange Limited (EF), a company in the educational tour business, when his employment was terminated without cause. His employment contract contained a confidentiality clause and a one-year restrictive covenant that limited his ability to compete with EF. On termination, Conklin negotiated a severance agreement in which he agreed to comply with both provisions.
