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ARTICLE · 03 JUNE 2026

Proposed Canada Labour Code Amendments Prohibit Federal Employers From Imposing Non-compete Clauses

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Proposed amendments to Canada's Labour Code could fundamentally reshape how federally regulated employers structure employment agreements by prohibiting non-compete clauses for most employees.

CanadaEmployment and HR
Amy Gibson
Amy Gibson
Megan Kheong
Megan Kheong
Lynsey Gaudin
Lynsey Gaudin
Shandra Czarnecki
Shandra Czarnecki
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Potential amendments to the Canada Labour Code, if passed, will impact Federally regulated employers by prohibiting non-compete clauses and other employment-related restrictions. Employers operating in these sectors should take note of these proposed changes and consider their implications for existing and future employment agreements.

Background

Bill C-31, titled A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, was introduced and completed its first reading at the House of Commons on May 6, 2026. If passed, the Bill will make significant changes to the Canada Labour Code pertaining to non-compete clauses and other employment-related restrictions.

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