The Competition Bureau is inviting interested parties to provide comments on new guidelines to address wage-fixing and no-poaching agreements following recent amendments to the Competition Act.
In June 2022, the Government of Canada added subsection 45(1.1) to the Act to protect competition in labour markets. The Bureau's new guidelines describe its approach to enforcing subsection 45(1.1) which comes into force on June 23, 2023. They will supplement the Bureau's current Competitor Collaboration Guidelines.
When the amendment comes into force, wage-fixing and no-poaching agreements will become illegal and subject to significant criminal penalties in Canada.
Much like other agreements between competitors, such as price fixing, wage-fixing and no-poaching agreements undermine competition. Maintaining and encouraging competition among employers results in higher wages and salaries, as well as better benefits and employment opportunities for workers.
Interested parties can provide comments on the Bureau's guidelines online, or to the coordinates below, by no later than March 3, 2023.
Cartels Directorate
Competition Bureau
50 Victoria Street
Gatineau, Quebec
K1A 0C9
Each submission received by the Bureau will be published on its website unless the provider specifically requests that it be kept confidential.