Five things to know about Canada's new wage-fixing and no-poaching prohibitions

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New rules prohibiting wage\u002Dfixing and no\u002Dpoaching agreements kick in June 23 to stop on companies undermining competition at employees\u0027 expense. Read on.

“What the new law does is make it a criminal offence for a subset of buyer-side conduct segments.”“The wage-fixing and no-poaching amendments coming into force is an important step in the ongoing modernization of Canada’s competition law,” competition commissioner Matthew Boswell said in a press release.The amendment applies only to pacts between unaffiliated employers.

It said it intends to target restraints that “are clearly broader than necessary in terms of duration or affected employees, or where the business agreement or arrangement is a sham.” The bureau said it will also generally not assess wage-fixing or no-poaching clauses that are ancillary to merger transactions under the new criminal provisions.

 

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