As of June 23, it is a criminal offence for two or more employers to form deals that fix, maintain, decrease or control wages. The same goes for agreements that prevent companies from hiring or soliciting each other's employees.
The penalty for violating the wage-fixing and no-poaching provisions includes imprisonment for up to 14 years, and/or a fine to be set at the discretion of the court.Section 45 of the Competition Act has until now criminally prohibited agreements between competitors to fix prices, allocate markets or restrict output.
While the rules cover wage-fixing and no-poaching agreements between employers regardless of whether they compete in the supply of a product, the Competition Bureau said it expects to prioritize its enforcement on arrangements between companies competing for labour. If the parties could have achieved an equivalent or comparable arrangement through"significantly less restrictive means that were reasonably available," then the bureau said it would conclude the restraint was not necessary.
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