The Canada Brief

Canada · 6 d ago

A resume on a desk

Competition Bureau urges provinces to limit non-compete agreements

In a letter to provincial and territorial governments, interim commissioner Jeanne Pratt calls the breadth of non-compete use in Canada “concerning”. She says the clauses can reduce wages, job mobility and entrepreneurship.

What it is

Non-compete clause

A non-compete clause can bar a worker from joining a rival or starting a competing business for a set period after leaving a job.

Employees under a non-compete

29-39 %

Employers report that between 29 and 39 per cent of private-sector employees are covered, according to an OECD survey. Of workers with one, 23 per cent say it has kept them from changing jobs.

Ontario banned most new non-competes in 2021 and is the only province to do so. The federal government committed in its 2025 budget to restricting them.