Employers should take note of recent amendments made to the Competition Act (Act) by Bill C-19, Budget Implementation Act, 2022, No. 1 which will come into force on June 23, 2023.
The amendments make it a criminal offence for an employer to conspire, agree or arrange with an unaffiliated employer to fix, maintain, decrease or control wages or terms of employment ("wage-fixing agreements") or to refrain from hiring or trying to hire one another's employees ("no-poach agreements") (see the Guide to the 2022 amendments to the Competition Act, published by the federal government). This is a new provision within the existing criminal conspiracy provisions of the Act.
The penalty for violating this provision is imprisonment for up to fourteen years or a fine to be set at the discretion of the court, or both.
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