Competition Bureau Urges Provinces and Territories to Limit Non-Compete Agreements
Interim Competition Commissioner Jeanne Pratt has called on provincial and territorial labour ministers to introduce legislation restricting non-compete agreements, citing OECD data that up to 39% of Canadian private-sector workers are bound by such clauses.
On October 29, 2026, Interim Commissioner of Competition Jeanne Pratt published an open letter urging provincial and territorial labour ministers to introduce legislation limiting the use of non-compete agreements. The Competition Bureau argues that widespread non-competes restrict labour mobility, suppress wages, hinder entrepreneurship, and create barriers to competition and economic growth.
According to OECD surveys cited by the Bureau, between 29% and 39% of private-sector employees in Canada may be covered by a non-compete agreement. Among Canadian firms that use these clauses, 30% apply them to every employee regardless of role or seniority. The data also indicates that non-competes cover 13% to 25% of workers who have no access to confidential information, as well as 15% to 26% of low-wage workers earning less than $3,000 per month. The Bureau noted that fear of unenforceable clauses can discourage workers from pursuing better-paying jobs.
Some jurisdictions have already moved to restrict the practice. Ontario has prohibited most employment non-compete agreements since December 2021, subject to limited exceptions for senior executives or business sales. Following Ontario's ban, some employers have shifted to using non-solicitation agreements or non-disclosure agreements instead of non-competes.
At the federal level, the Government of Canada introduced Bill C-31 in May 2026, proposing amendments to the Canada Labour Code to generally prohibit non-competes in federally regulated workplaces.
Despite these steps, the Competition Bureau is calling for consistent reform across all provinces and territories to remove unnecessary barriers to competition.