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ARTICLE · 22 MAY 2026

Federal Government Proposes Non-Compete Prohibition And Publishes Final Equal Pay Regulations Under The Canada Labour Code

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In recent weeks, the federal government has advanced two significant initiatives affecting employers governed by the Canada Labour Code ("Code"). On May 6, 2026, the federal government introduced Bill C-31, Budget 2025 Implementation Act, No. 2 ("Bill C-31"), which proposes to prohibit non-compete clauses and certain other employment-related restrictions for most federally regulated employees.

CanadaEmployment and HR
Jackie VanDerMeulen
Jackie VanDerMeulen
Christopher Pigott
Christopher Pigott
Shane Todd
Shane Todd
Andrew Gould
Andrew Gould
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In recent weeks, the federal government has advanced two significant initiatives affecting employers governed by the Canada Labour Code ("Code").

On May 6, 2026, the federal government introduced Bill C-31, Budget 2025 Implementation Act, No. 2 ("Bill C-31"), which proposes to prohibit non-compete clauses and certain other employment-related restrictions for most federally regulated employees. Separately, the federal government published the final Regulations Amending Certain Regulations Made Under the Canada Labour Code (Equal Treatment and Temporary Help Agencies): SOR/2026-75 (the "Equal Pay Regulations"), which set out implementation details for equal pay provisions first enacted in 2018. Those underlying amendments have now been proclaimed into force, effective October 20, 2026.

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