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ARTICLE · 09 JUNE 2023

The Bureau Issues Final Enforcement Guidance On The New Criminal Prohibition On Wage-Fixing And No-Poaching Agreements

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On May 30, 2023, following a consultation period, the Canadian Competition Bureau ("Bureau") published its much-awaited Enforcement Guidelines on wage-fixing and no poaching agreements...

CanadaAntitrust/Competition Law
William Wu
William Wu
Joshua Chad
Joshua Chad
Paul Boshyk
Paul Boshyk
Rachel Wong (Articling Student)
Rachel Wong (Articling Student)
Nandini Pahari
Nandini Pahari
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On May 30, 2023, following a consultation period, the Canadian Competition Bureau ("Bureau") published its much-awaited Enforcement Guidelines on wage-fixing and no poaching agreements ("Guidelines"). The Guidelines set out the Bureau's approach to enforce the new provisions of the Competition Act (the "Act") criminalizing certain agreements between employers, which are set to come into force on June 23, 2023.

The Guidelines offer essential insight to employers who will need to review their agreements to ensure compliance with the new provisions to the Act.

Overview of the New Criminal Provisions

Subsection 45(1.1) of the Act makes agreements between unaffiliated employers (a) to fix, maintain, decrease or control salaries, wages or terms and conditions of employment ("wage-fixing agreement") and/or (b) to not solicit or hire each other's employees ("no-poaching agreement") per se illegal. It was enacted in June 2022 following concerns raised by the Bureau

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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