On June 23, 2023, amendments to Canada’s Competition Act came into force that prohibit agreements between employers to fix wages (or other terms and conditions of employment) or not hire each other’s employees. The amendments bring criminal competition law offences into the employment sphere. Businesses may not be aware that competition law now governs their employment relationships. Labour and employment lawyers will need to learn and stay apprised of a new area of law.

The discussion below provides an overview of the amendments and is not legal advice. Employers should contact a lawyer in their jurisdiction for advice specific to their business. Breaching these provisions can carry serious consequences.

What has changed?

The new section 45(1.1) makes it a criminal offence for employers to conspire, agree or arrange to fix, maintain, decrease, or control wages or other terms and conditions of employment or to not solicit or hire each other’s employees.

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The new offence has the following elements:

1. The accused is an employer (which can include a company’s directors, officers, agents, and employees such as human resource professionals);
2. who conspired, agreed, or arranged;
3. with another employer who is not affiliated with that person;
4. to:
   1. fix, maintain, decrease or control salaries, wages or terms and conditions of employment; or
   2. not solicit or hire each other’s employees.

There is no requirement that the parties to the alleged agreement be competitors in...

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