Home Workplace News Wage fixing, no-poaching agreements now covered by Competition Bureau’s immunity, leniency programs

Wage fixing, no-poaching agreements now covered by Competition Bureau’s immunity, leniency programs

by HR Law Canada

The Competition Bureau of Canada, in collaboration with the Public Prosecution Service of Canada (PPSC), has announced updates to its Immunity and Leniency Programs. These changes now encompass the Competition Act’s new wage-fixing and no-poaching provisions, which came into force on June 23, 2023.

The updated provisions aim to curb anti-competitive practices by prohibiting companies from engaging in two specific activities: agreeing to fix, maintain, decrease, or control wages or other terms of employment, and agreeing to refrain from soliciting or hiring each other’s employees.

“The updates increase transparency and predictability for potential applicants,” the Bureau stated in a press release, emphasizing the enhanced ability of both organizations to prepare cases for prosecution.

The Immunity and Leniency Programs are designed to offer immunity from prosecution or lenient treatment to individuals or businesses that agree to cease their involvement in serious criminal activities under the Competition Act and provide significant cooperation to investigations.

These programs, administered jointly by the Bureau and the PPSC, have been integral in detecting and halting unlawful conduct, it said.

The Bureau noted that the Immunity and Leniency Programs remain among their most effective tools for enforcing compliance with the Competition Act. As legal and market conditions evolve, both the Bureau and the PPSC will continue to review and update these programs accordingly.

For HR professionals, employers, and business leaders, understanding these changes is crucial as they navigate the legal landscape concerning employment practices. The expanded provisions underscore the importance of maintaining competitive practices and avoiding agreements that could potentially violate the Competition Act.

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