Share on LinkedInShare on LinkedIn

ARTICLE · 27 JUNE 2023

Wage-Fixing & No-Poach Agreements Now Illegal: What Businesses Need To Know

Wage-fixing and "no-poach" agreements between employers are now illegal under the Competition Act, subject to limited exceptions.

CanadaEmployment and HR

Wage-fixing and "no-poach" agreements between employers are now illegal under the Competition Act, subject to limited exceptions. While the Competition Bureau has issued guidelines regarding its intended approach to enforcing these changes, Canadian businesses should be aware of the potential impact of these changes on their day-to-day operations to remain in compliance with the Competition Act and avoid potentially significant fines or even prison time.

What has changed?

The Competition Act now prohibits agreements between unaffiliated employers – even those that do not compete with one another – from:

  1. Wage-Fixing. Fixing, maintaining, decreasing, or controlling salaries, wages, or any other "terms or conditions" of employment that may influence an employee's decision on where to work, such as benefits, bonuses, work hours, etc.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from