January 31, 2023
Practical Law Canada Competition, of which I am Lawyer Editor, has published a new Legal Update that discusses new proposed Competition Bureau guidelines on wage fixing and no-poaching agreements under section 45 of the Canadian Competition Act.
Below is an excerpt with a link to the full Legal Update.
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This Legal Update discusses new proposed Competition Bureau (Bureau) guidance on wage fixing and no-poaching agreements under section 45(1.1) of the Competition Act, R.S.C. 1985, c. C-34, which will come into force on June 23, 2023. The Update also discusses the background for the new upstream (that is, buy-side) employment-related criminal conspiracy offences and implications for employers.
On January 18, 2023, the Competition Bureau (Bureau) announced that it was seeking feedback on new proposed guidance on wage-fixing and no-poaching agreements (see Competition Bureau seeks feedback on new guidance related to wage fixing and no-poaching agreements, Competition Bureau, January 18, 2023).
In announcing its new draft Enforcement guidance on wage-fixing and no poaching agreements(Guidelines), the Bureau said:
“Like agreements between competitors related to price-fixing, market allocation and output restrictions, wage-fixing and no-poaching agreements undermine competition and the efficient allocation of resources. Maintaining and encouraging competition among employers results in higher wages and salaries, as well as better benefits and employment opportunities for workers.”
The Bureau’s announcement follows recent significant amendments to the Competition Act, R.S.C. 1985, c. C-34, which included the introduction of new criminal offences for wage-fixing and no-poaching agreements between unaffiliated employers.
The Bureau’s consultation is open until March 3, 2023, and interested parties can file submissions on the Guidelines using the Feedback Form — Enforcement guidance on wage-fixing and no poaching agreements.
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For the full Legal Update, see: here.
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