Politics · Canada · 10 hrs ago
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.
Canada’s Competition Bureau is urging provincial and territorial governments to limit non-compete agreements for workers.
Interim Competition Commissioner Jeanne Pratt said their widespread use is concerning and 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-competes.
Ontario is the only province with a statutory ban, introduced in 2021, with limited exceptions.
- Who
- Canada’s Competition Bureau, represented by Interim Commissioner Jeanne Pratt, is calling for limits.
- What
- The bureau wants provincial and territorial governments to limit non-compete agreements for workers.
- When
- October 29, 2026. Pratt’s letter was dated that day.
- Where
- Canada.
- Why
- The bureau says widespread non-competes can reduce wages, job mobility and entrepreneurship.
This story does not have two clearly opposing sides.
Ontario enacted a statutory ban on most new employment non-compete clauses, with limited exceptions.
The federal budget committed the Government of Canada to restricting the use of non-compete agreements.
Interim Commissioner Jeanne Pratt dated a letter urging provincial and territorial governments to limit non-competes.
- OECD estimate
- 29 to 39 per cent of Canadian private-sector employees are covered by non-competes
- Job changes
- 23 per cent of Canadian workers with non-competes said the agreements prevented them from changing jobs
- Business starts
- About 12 per cent said their agreements prevented them from starting a business
- Employer practice
- 30 per cent of Canadian firms using non-competes reportedly apply them to every employee
- Ontario
- The province enacted its statutory ban in 2021
3 sources
What people are saying
foster more competitive labour markets.
concerning
It is quite burdensome
real fiduciary duty