ARTICLE · 01 DECEMBER 2025

Federal Budget 2025 Introduces Big Changes: What Employers Need To Know

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On November 17, 2025, the federal government passed its Canada Strong Budget 2025 (the "Budget").

CanadaEmployment and HR

Williams HR Law

On November 17, 2025, the federal government passed its Canada Strong Budget 2025 (the "Budget"). While positioned as pro-growth and pro-competition, several measures signal a more assertive federal posture on labour standards, tax compliance, pensions, and regulatory oversight, with important legal, financial, and reputational implications for employers.

Below we summarize the key measures of interest to employers:

Restriction of Non-Compete Agreements in Federally Regulated Workplaces

The Budget intends to amend the Canada Labour Code [CLC] to restrict the use of non-competition clauses among federally regulated employers.

Enhanced Worker Misclassification Enforcement

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