The Ontario government recently made significant amendments to its workplace laws in an effort to create a more pro-worker employment model. Formally known as Bill 27: Working for Workers Act, 2021, it changes a series of workplace rights and obligations, including banning non-compete agreements, requiring that employers of a certain size adopt “disconnecting from work” policies, and introducing licensing requirements for recruiters and staffing agencies. The amendments were based on the recommendations of the Ontario Workforce Recovery Advisory Committee and are the result of the Committee’s discussions with various players in the workforce – workers, businesses, and unions. Here’s what Canadian employers need to know about the three most critical changes – including some that have already taken effect.

Banning Non-Compete Agreements

The legislation prevents employers from entering into non-compete agreements with employees and voids any such agreement entered into after the legislation’s effective date of October 25, 2021, subject to two exceptions:

• First, non-compete agreements will be permitted in the context of the sale or lease of a business or part of a business. Accordingly, if an individual sells a business and then becomes employed by the purchaser, the purchaser may enter into a non-compete agreement with that individual.
• Second, employers may use non-compete agreements with their executive-level employees, such as the company’s president, chief executive...

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