The federal government delivered Budget 2025: Canada Strong on
November 4, 2025. The budget proposes several employment-related
amendments that may affect federally regulated employers, including
potential changes to the Canada Labour Code, Canadian
Human Rights Act, Employment Insurance Act, and
Federal Public Sector Labour Relations Act.
Set out below is a summary of the key proposals that may impact
employers.
Non-Compete Agreements
Budget 2025 proposes amendments to the Canada Labour
Code that would restrict the use of non-compete agreements in
employment contracts for federally regulated businesses.
These proposed restrictions mirror those already in place in
Ontario. In 2021, the province enacted the Working for Workers
Act, 2021, which generally prohibits non-competition clauses
in employment agreements entered into after October 25, 2021,
subject to limited statutory exceptions.
