Recent amendments to the Competition Act will make it a
criminal offence for employers to enter into
"wage-fixing" and/or "no-poaching" agreements
with other employers. These prohibitions apply to agreements
between employers regardless of whether they are
competitors, or not. The changes come into force on June 23,
2023.
Wage-fixing agreements
The Act prohibits agreements between un-affiliated
employers which fix, maintain, decrease or control salaries, wages
or terms and conditions of employment.
No-poaching agreements
The Act also prohibits agreements between un-affiliated
employers not to solicit or hire each other's employees. This
prohibition does not apply to a one-sided agreement by one employer
not to poach employees of another business. It does, however,
prohibit employers from mutuallyagreeing not to solicit or hire
each other's employees.
