Clauses impact millions of private-sector workers across Canada, restricting job opportunities and entrepreneurship.

GATINEAU, QC, Oct. 29, 2026 /CNW/ -- Labour mobility is an important driver of competition and economic growth. A worker's freedom to change jobs or start a business promotes better pay and working conditions, broadens talent pools and supports entrepreneurship. 

In an open letter published today, Interim Commissioner of Competition Jeanne Pratt urges provincial and territorial ministers to foster more competitive labour markets by limiting the use of non-compete agreements.

Non-compete agreements restrict workers from joining a competing employer or starting a competing business for a period of time after leaving a job, usually to protect sensitive information or customer relationships. However, OECD surveys of workers and firms in Canada found that non-competes are widespread, increasingly used, and often applied beyond roles where they are most justified. They cover a broad range of workers, including people in fixed-term contracts, lower-paying jobs and roles with no access to confidential information. These clauses are often unenforceable under the law but can still discourage people from pursuing better-paying jobs or starting their own business.

Ontario and the federal government have already taken action to restrict non-compete agreements. The Competition Bureau encourages other provinces and territories to act on this momentum and reform their own labour and employment laws.

Quotes

"To succeed in a changing economy, Canada needs workers and businesses that can adapt and grow. I encourage governments to remove unnecessary barriers to labour mobility, so that workers can find better jobs, businesses can expand and innovation can thrive."

Jeanne Pratt
Interim Commissioner of Competition

Quick facts

• The OECD found that between 29% and 39% of private-sector employees in Canada may be covered by a non-compete agreement.
• Ontario has prohibited most employment non-compete agreements since 2021, subject to limited exceptions.
• The federal government has also proposed amendments to the Canada Labour Code in Bill C-31 that would generally prohibit non-competes in federally regulated workplaces, subject to defined exceptions.

Related products

• Open letter to provinces and territories on addressing the widespread use of non-compete agreements in Canada

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau