Wage-fixing and no-poaching agreements are illegal in Canada

Like price-fixing agreements between competitors, wage-fixing and no-poaching agreements undermine competition. Maintaining and encouraging competition among employers results in higher wages and salaries, as well as better benefits and employment opportunities for employees.


Wage-fixing agreements

A wage-fixing agreement is when employers agree to fix, maintain, decrease or control wages.

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No-poaching agreements

A no-poaching agreement is when employers agree to refrain from hiring or soliciting each other’s employees.

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Penalties

The penalty for violating the wage-fixing and no-poaching provisions includes:

  • imprisonment for up to fourteen years, and/or
  • a fine to be set at the discretion of the court

Further reading

Wage-Fixing Agreements

No-Poaching Agreements