The new wage-fixing and no-poaching offence
Employers who participate in illegal wage-fixing or no-poach agreements risk significant criminal penalties, including 14 years in jail or fines at the discretion of the court, or both.
Employers also face potential civil lawsuits for damages under the Act..
Under the Competition Act , it is a criminal offence to engage in an illegal agreement.
Anyone convicted of participating in bid-rigging, price-fixing, allocating markets, restricting supply, wage-fixing or no-poaching agreements will have a criminal record..
The ancillary restraints defence is available where the employer establishes, on a balance of probabilities, that the labour restraint is ancillary to, or flows from, a broader or separate agreement that includes the same parties; the labour restraint is directly related to and reasonably necessary for achieving the Jun 14, 2023.
The basics.
A wage-fixing agreement refers to an agreement between employers to fix, maintain, decrease or control wages or other terms of employment.
A no-poaching agreement refers to an agreement between employers to restrict job mobility by refraining from hiring or trying to hire one another's employees..
A wage-fixing agreement is when employers agree to fix, maintain, decrease or control wages..
A wage-fixing agreement is when employers agree to fix, maintain, decrease or control wages.Sep 19, 2023.
As of June 23, 2023, wage-fixing and no-poaching agreements between employers are illegal.
Like price-fixing agreements between competitors, wage-fixing and no-poaching agreements undermine competition.Sep 19, 2023.
On June 23, 2022, significant amendments were made to Canada’s Competition Act (the “Act”) which will undoubtedly impact commercial and employment practices in Canada.While the majority of the amendments to the Act came into force immediately, specific amendments relating to wage-fixing and no-poaching agreements were held in abeyance and will not .
The following general principles have been articulated in the Guidance to shed light on the Bureau’s approach to interpretation and enforcement of the new provision, and as further guidance as to the Bureau’s view of what will constitute “naked restraints” on competition.
Employers The term “employer” has not been defined in the Act.
However, the B.
Subsection 45(1.1) of the Act provides as follows: 45(1.1)Every person who is an employer commits an offence who, with another employer who is not affiliated with that person, conspires, agrees or arranges: a. to fix, maintain, decrease or control salaries, wages or terms and conditions of employment; or b. to not solicit or hire each other’s emplo.
Nevertheless, the case for dealing with wage-fixing and no-poach agreements in the Competition Act is far from clear.
Competition law distinguishes between conduct that always harms competition and thus should be per se illegal, and conduct that may, or may not, cause harm, depending on the circumstances.
The Bureau has expressly stated that wage-fixing and no-poaching agreements that are “naked restraints” on competition, including “restraints on wages or job mobility that are not implemented in furtherance of a legitimate collaboration, strategic alliance or joint venture,” will be per se illegal under section 45(1.1).
Under the per sestandard, ce.
The new provision prohibits two kinds of agreements between unaffiliated employers:
Employers, Take Note! Amendments to the Competition Act Have Criminalized Wage-Fixing and No-Poaching Agreements On June 23, 2022, significant amendments were made to Canada’s Competition Act (the “ Act ”) which will undoubtedly impact commercial and employment practices in Canada.
On January 18, 2023, the Competition Bureau released for consultation draft enforcement guidance on wage-fixing and no-poaching agreements, describing its approach to enforcing a new provision under the Competition Act that will make such agreements criminal offences as of June 23, 2023.
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