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ARTICLE · 26 NOVEMBER 2025

Federal Budget 2025: New Restrictions On Non‑compete Clauses

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On November 4, 2025, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, tabled Prime Minister Mark Carney's first Liberal government budget.

CanadaEmployment and HR
Josée Gervais
Josée Gervais
Carla Chirila
Carla Chirila
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On November 4, 2025, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, tabled Prime Minister Mark Carney's first Liberal government budget.

Among the many measures announced, the government proposes to amend the Canada Labour Code to restrict the use of non-compete clauses in employment contracts of federally regulated businesses, such as banks, interprovincial or international transportation companies, and communications providers (radio, television, etc.).

According to the government, "non-compete agreements that prevent workers from moving to rivals or starting a competing business reduces competition and undermines the efficiency of the labour market."1

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