Competition Bureau urges provinces to restrict employment non-competes

The Competition Bureau has recommended that provincial and territorial governments restrict the use of non-compete agreements in employment contracts.

Photo credit: Competition Bureau


GATINEAU — The Competition Bureau is urging provincial and territorial governments to restrict non-compete agreements in employment contracts, saying their widespread use can limit job opportunities, wages and business creation.

Non-compete clauses can prevent employees from taking jobs with competing firms or starting competing businesses after leaving an employer. In an October 29 open letter, interim Commissioner of Competition Jeanne Pratt said such restrictions reach lower-paid workers and people without access to confidential information. Research cited by the bureau estimates that 29 to 39 per cent of private-sector employees in Canada may be covered.

The bureau recommends that governments consider restrictions similar to Ontario’s 2021 prohibition on most new employment non-competes, with limited exceptions. It also calls for clear guidance, public education and enforcement.

The recommendation does not change existing employment laws. Federal legislation proposing similar restrictions for federally regulated workplaces remains before Parliament, with Bill C-31 under committee consideration.


Shara Cooper MA, MFA

Shara Cooper is a writer, editor and independent publisher based in Edmonton, Alberta. She is the founder of Nordic Prairie Life and SCENE 49 and publishes The Boundary Sentinel, an independent news publication serving British Columbia’s Boundary region. Her work spans journalism, essays, culture, history and community storytelling, and her writing has appeared in various publications including the Toronto Star.

https://www.sharacooper.ca
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