Politics · Canada · 10 hrs ago

Canada’s Competition Bureau urges limits on worker non-compete agreements

Canada’s Competition Bureau urges limits on worker non-compete agreements

Canada’s Competition Bureau is urging provinces and territories to limit non-compete clauses in employment contracts.

These clauses can stop workers from joining a rival company or starting a competing business for a set time after leaving a job.

Interim Competition Commissioner Jeanne Pratt says their widespread use can reduce wages, job mobility and entrepreneurship.

An OECD survey found that 29 to 39 per cent of private-sector employees in Canada are covered by non-compete clauses.

Some workers say the clauses have stopped them from changing jobs or starting a business, even though courts may reject agreements judged unreasonable.

Ontario already bans most new employment non-competes, with exceptions including some business sales and senior executives.

The federal government said in its 2025 budget that it would restrict their use, while the bureau is calling on provincial and territorial governments to act.

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What people are saying

Jeanne PrattInterim Commissioner of Competition
foster more competitive labour markets.
via Global News
concerning
via Global News
Jon PinkusEmployment lawyer and partner at Samfiru Tumarkin LLP
It is quite burdensome
via Global News
real fiduciary duty
via Global News