On June 23, 2023, amendments to the Competition Act
will take effect (the new criminal provision) which will prohibit
the following arrangements/agreements between unaffiliated
employers (subject to certain defences):
- arrangements/agreements between employers (whether or not they
compete) whereby the employers agree not to hire each other's
employees (a two-way, reciprocal no-poach agreement)
- arrangements/agreements between employers (whether or not they
compete) that serve to fix, maintain, decrease or control terms and
conditions of employment (a "conditions of employment"
agreement)
The new criminal provision is per se illegal and a
violation constitutes a criminal offence punishable by up to 14
years imprisonment or a fine at the discretion of the court, or
both. Both individuals and corporations can be found guilty of an
offence. Private parties can also commence damages actions based on
an alleged violation of the new criminal provision.
