Canadian agency issued draft enforcement guidance on new wage-fixing agreement and no-poach agreement prohibitions included in amendments to Competition Act, which take effect on June 23, 2023. Violators of the law could face monetary and criminal penalties, including jail time. Public input on this draft is open through March 3, 2023.

When Bill C-19, Budget Implementation Act, 2022, No. 1 received Royal Assent in June 2022, it amended Canada’s Competition Act (Act) by including a new provision, s. 45(1.1), which comes into force on June 23, 2023. Section 45(1.1) will prohibit employers from conspiring, agreeing or arranging to enter into “wage-fixing agreements” and “no-poach agreements” with another employer that is not affiliated with them. The Competition Act applies to all businesses operating in Canada, whether they are provincially or federally regulated.

On January 18, 2023, Canada’s Competition Bureau (Bureau) published draft enforcement guidance on wage-fixing and no poaching agreements (Draft Guidelines) for public consultation. The Draft Guidelines describe the Competition Bureau’s proposed approach to enforcing s. 45(1.1), and supplement the Bureau’s existing Competitor Collaboration Guidelines (CCGs). Those interested in submitting their views on the Draft Guidelines may do so by completing an online feedback form by March 3, 2023 (11:59 pm Pacific time).

Summary of Draft Guidelines

Set out below is a summary of key aspects of the Bureau’s Draft...

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