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ARTICLE · 06 JUNE 2023

New Enforcement Guidelines For Wage-Fixing And No-Poach Agreements

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Blake, Cassels & Graydon LLP

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On May 30, 2023, Canada's Competition Bureau (Bureau) published Enforcement Guidelines (Guidance) to provide clarity on its enforcement approach to the new criminal prohibition against wage-fixing and no-poach agreements...

CanadaEmployment and HR
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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On May 30, 2023, Canada's Competition Bureau (Bureau) published Enforcement Guidelines (Guidance) to provide clarity on its enforcement approach to the new criminal prohibition against wage-fixing and no-poach agreements that comes into force on June 23, 2023. The new provision prohibits unaffiliated employers from entering into agreements or arrangements to fix wages or other terms and conditions of employment (wage-fixing agreements) or to not hire or solicit each other's employees (no-poach agreements).

Summary of the Guidance

The Guidance has a number of elements relevant to businesses that operate in Canada. They include:

  • Wage-Fixing Prohibition Casts a Wide Net. Provision captures agreements between employers regardless of whether they are competitors. The scope is broad. "Terms and conditions of employment" are terms that "could affect a person's decision to enter into or remain in an employment contract." This may include job descriptions, working

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