Human Resources Legislative Update
Employers Take Note: Incoming Changes to Competition Act
Date: June 19, 2023
Employers are reminded that amendments made to the Competition Act by Bill C-19, Budget Implementation Act, 2022, No. 1 (Bill C-19) will come into force on June 23, 2023.
Bill C-19 amends the existing criminal conspiracy provisions of the Competition Act to make it a criminal offence for an employer to conspire, agree or arrange with an unaffiliated employer to:
- fix, maintain, decrease or control salaries, wages or terms and conditions of employment (“wage-fixing agreements”)
- not solicit or hire each other’s employees (“no-poach agreements”)
The amendments apply to new agreements made between employers on or after June 23, 2023, as well as any implementation or reaffirmation of existing agreements after that date. The penalty for violating the new provision is imprisonment for up to 14 years or a fine to be set at the discretion of the court, or both.
The Competition Bureau has published enforcement guidelines that provide some insight into the new provisions (see Enforcement Guidelines on wage-fixing and no poaching agreements). Employers should carefully consider their existing agreements and arrangements with other employers to determine whether the new provisions might be engaged. While there are defences that may apply under the Competition Act, this is a complex area of law and employers will want to consider whether any changes to their agreements or arrangements are required.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©
