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ARTICLE · 05 NOVEMBER 2026

Stop The Presses! Competition Bureau Opposes Non-Competes

McMillan LLP
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McMillan LLP

McMillan LLP

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Canada's Competition Bureau is urging provincial and territorial governments to restrict employers' use of non-compete clauses in employment agreements, arguing these provisions harm job mobility and innovation. Following Ontario's 2021 restrictions and proposed federal legislation, the Bureau advocates for coordinated action across jurisdictions to limit what it characterizes as the widespread and potentially anticompetitive use of non-competes beyond senior roles.

CanadaEmployment and HR

On October 29, 2026, Interim Commissioner of Competition Jeanne Pratt published an open letter to all provincial and territorial Ministers responsible for labour and employment standards across Canada. Accompanied by a news release from the Competition Bureau, the Commissioner urged provincial and territorial governments to enact legislation that would limit employers’ use of non-compete clauses in employment agreements (“non-competes”).

Non-Competes Across Canada

Non-competes restrict employees from joining a competing employer or starting a competing business for a period of time after leaving a job. In the employment context, non-competes are often used to protect employers’ sensitive information or customer relationships following the end of an employment relationship. Additionally, non-competes are often used in connection with the purchase and sale of businesses, where sellers agree not to compete with business they have just sold.

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