[ESTABLISHING A BUSINESS ENTITY IN CANADA] 84
reason” to resign from the employment (CCQ 2095). Employers in Ontario have limited ability to use non-compete clauses. The provincial legislation prohibits employers from binding any employee to a non-compete agreement, unless the employee in question is (a) an executive, meaning that they hold a designated executive position, or (b) a seller of part or all of a business, who becomes an employee of the buyer immediately following the sale. Also, employers with more than 25 employees are required to have a written “disconnecting from work” policy in place. Disconnecting from work means “not engaging in work-related communications, including emails, telephone calls, video calls or the sending or reviewing of other messages, so as to be free from the performance of work.” Privacy Rights and Data Protection Privacy Canada’s federal privacy and data protection law applicable to the private sector is the Personal Information Protection and Electronic Documents Act (PIPEDA). PIPEDA applies to private sector organizations that collect, use, and disclose personal data (called “personal information” (PI) in Canada) during a commercial activity that takes place within a Canadian province or territory, unless the province has enacted “substantially similar” legislation. Such legislation is in force in 3 provinces: Alberta’s Personal Information Protection Act (PIPA AB), British Columbia’s Personal Information Protection Act (PIPA BC) and Québec’s Act Respecting the Protection of Personal Information in the Private Sector (Québec’s Privacy Act). Québec’s Privacy Act was very recently overhauled by the adoption of the Act to modernize legislative provisions relating to the protection of personal information (Québec), also known as Law 25
(formerly Bill 64), which implements a major reform over the next 3 years, at the end of which the Québec rules will very closely resemble those of the European Union’s General Data Protection Regulation (GDPR). Notably, PIPEDA also applies to the inter- provincial and international collection, use and disclosure of PI. PIPA AB, PIPA BC and the Québec Privacy Act apply to the privacy and data protection practices of organizations within the provinces of Alberta, British Columbia and Québec respectively, which are not otherwise governed by PIPEDA. In Ontario, PIPEDA is the only privacy and data protection law applicable to private sector organizations that do not collect personal health information. Canada also has privacy and data protection laws specific to the health sector and to the public sector. PIPEDA is consent-driven, meaning that organizations must obtain meaningful consent from individuals before collecting, using, or disclosing their personal information, except in limited circumstances where specific exceptions apply. The legislation is based on the principles outlined in the OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data, which also underpin frameworks such as the European General Data Protection Regulation (GDPR). Privacy laws are potentially subject to major reforms in the near future. Federally, the Digital Charter Implementation Act (Bill C-27), which included the Artificial Intelligence and Data Act , died upon the prorogation of Parliament in January 2025. It should also be noted that in June 2021, the Ontario government released a white paper in which it raised concerns with several "points of weakness" it identified with the Digital Charter Implementation Act, 2020 (former Bill C-11). These "points of weakness" included: a consent
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator