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ARTICLE · 05 JUNE 2023

New Amendment To Competition Act Prohibits Wage-Fixing And No-Poaching Agreements

McLennan Ross LLP
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On June 23, 2023, subsection 45(1.1) of the federal Competition Act comes into force criminalizing wage-fixing and no-poaching agreements (the "Amendment").

CanadaEmployment and HR
Michael Aasen
Michael Aasen
Zachary Dietrich
Zachary Dietrich
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Overview

On June 23, 2023, subsection 45(1.1) of the federal Competition Act comes into force criminalizing wage-fixing and no-poaching agreements (the "Amendment"). Unlike the existing anti-conspiracy provision, the Amendment does not require the parties to be competitors. Any wage-fixing or no-poaching agreements are illegal, even between employers in completely different industries. Despite the expanded reach, the Amendment only applies to agreements entered by employers on or after the Amendment comes into force or conduct that reaffirms or enforces older agreements. Therefore, older agreements with wage-fixing or no-poaching clauses do not necessarily violate the Amendment; they just cannot be enforced.

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