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. 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.
No-poaching agreements
A no-poaching agreement is when employers agree to refrain from hiring or soliciting one another’s employees.
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
Resources
Are you ready for June 23?
Transcript of scenes 1 to 6 - Are you ready for June 23?
Title/Cover
Are you ready for June 23?
Visual
Competition Bureau visual, logo
Scene 1: Audio
Are you ready? As of June 23, wage-fixing and no-poaching agreements...
Scene 1: Visual
Image on-screen: Animated text that reads “ARE YOU READY? ON JUNE 23rd WAGE-FIXING AND NO-POACHING AGREEMENTS”. A small calendar of June 2023 is depicted beside the text.
Scene 2: Audio
...are illegal in Canada.
Scene 2: Visual
Image on-screen: Text that reads “illegal in CANADA” with an outline of a map of Canada that has a transparent “X” through it.
Scene 3: Audio
Employers who get caught could face serious consequences.
Scene 3: Visual
Image on-screen: Animated text that reads “EMPLOYERS WHO GET CAUGHT COULD FACE SERIOUS CONSEQUENCES” with emphasis on the words “serious” and “consequences”.
Scene 4: Audio
These include steep fines and up to 14 years in jail.
Scene 4: Visual
Image on-screen: Animated text that reads “STEEP FINES”, “up to 14 years in jail” with emphasis on “steep fines”. A cartoon fence is depicted beside the text.
Scene 5: Audio
Now is the time to revise your practices and ensure you’re in compliance with the law.
Scene 5: Visual
Image on-screen: Animated text that reads “NOW is the time to REVISE your practices and ENSURE you’re in COMPLIANCE with the LAW.”
Scene 6: Audio
Visit competitionbureau.gc.ca for more information.
Scene 6: Visual
Image on-screen: Animated text that reads “Visit competitionbureau.gc.ca for more information”.
Wage-Fixing Agreements
Transcript of scenes 1 to 5 - Wage-Fixing Agreements
Title/Cover
Wage-Fixing Agreements
Visual
Competition Bureau visual, logo
Scene 1: Audio
Meet Zoe and Omar. They run businesses in the tech industry. Instead of attracting the best talent with competitive salaries...
Scene 1: Visual
Image on-screen: Split vertically. One side shows a smiling figure in front a downtown high-rise building with the sign “ACME” on the front. The other side shows a smiling figure in front of a different downtown high-rise building with the sign “ABC Co” on the front.
Scene 2: Audio
...they secretly agree to pay their employees a certain wage.
Scene 2: Visual
Image on-screen: Split vertically, showing the two figures from the shoulders up, talking on cellphones, tilting their heads, expressive eyebrows, and nodding.
Scene 3: Audio
This is wage-fixing. It often means workers are paid less than a competitive rate.
Scene 3: Visual
Image on-screen: Animated text that reads “THIS IS WAGE-FIXING”. A figure sitting at in an office chair at a desk with a laptop, picture frame and coffee mug on it. A clock is on the wall behind the desk. The figure is frowning and looks defeated.
Scene 4: Audio
While this allows Zoe and Omar to keep their costs low, it also means companies are not competing for the best talent.
Scene 4: Visual
Image on-screen: Split vertically. One side shows a figure sitting on a office chair at a desk with a monitor and keyboard on it. The figure has a focused expression and is looking at a document that reads “ACME Expenses” and shows a declining line chart with a “$” sign. The other side shows a figure standing in front of a desk with a picture frame and laptop on it and office chair. A clock is also on the wall behind the figure. The figure has a focused expression and is looking at a document that reads “ABC Inc. Expenses” and shows a declining line chart with a “$” sign.
Image on-screen: Animated text slides down from the top that reads “COMPANIES ARE NOT COMPETING FOR THE BEST TALENT”
Scene 5: Audio
As of June 23, wage-fixing agreements are illegal in Canada.
Scene 5: Visual
Image on-screen: A closeup of a calendar for June with the “23” highlighted. Image then zooms out to show a figure holding the phone with the calendar on it. Friday June 23rd 2023 is selected as the date and the calendar shows “Wage-Fixing Agreement” meeting with an “X” beside it, along with a “13:00-14:00 Client Meeting”. Animated text beside the phone reads “WAGE-FIXING AGREEMENTS ARE ILLEGAL IN CANADA”, with emphasis on the word “illegal”.
No-Poaching Agreements
Transcript of scenes 1 to 6 - No-Poaching Agreements
Title/Cover
No-Poaching Agreements
Visual
Competition Bureau visual, logo
Scene 1: Audio
Meet Hilda and Felipe. They’re two business owners who just made a deal.
Scene 1: Visual
Image on-screen: A city skyline appears, then zooms in to two figures standing in front of side-by-side downtown office high rises. One office high-rise has a sign that says “PROSOFT DEV” and the other has a sign that says “WE CAN CODE IT”. The figures smile and shake hands.
Scene 2: Audio
They’ve agreed not to hire each other’s staff, thinking it would be good for business.
Scene 2: Visual
Image on-screen: Split screen. One side shows two workers with shirts that say “PROSOFT DEV” sitting at a desk working on computers. The other side shows two workers with shirts that say “WE CAN CODE IT” sitting at a desk working on computers. All four of the workers’ faces look concerned and stressed with expressive eyebrows. In the foreground, two smiling figure heads appear and a thought bubble with a “$” sign appears connected to both of them.
Scene 3: Audio
This is a type of no-poaching agreement. What they didn’t realize is…
Scene 3: Visual
Image on-screen: Document labelled “NO-POACHING AGREEMENT” slides in from the right The document is signed by “Hilda” and “Felipe” in cursive at the bottom. The document shrinks to the middle of the screen and two figure heads are shown on either side, they look to the centre at the document and nod.”
Scene 4: Audio
...this is harmful to employees like Arif. Arif is being held back from a better job or a higher salary because of this agreement.
Scene 4: Visual
Image on-screen: Animated text that reads “THIS IS HARMFUL TO EMPLOYEES”. An animated arrow appears and goes from the text to an image of a figure sitting at a desk with a “WE CAN CODE IT” mug. The figures’ shoulders are slumped and is holding a document with the word “[REJECTED]” across it in red.
Scene 5: Audio
No-poaching agreements can also hurt the economy by reducing the need for companies to compete for talent.
Scene 5: Visual
Image on-screen: A block of city high-rises appears, then zooms out to show skyline. Animated text reads “REDUCING THE NEED FOR COMPANIES TO COMPETE FOR TALENT”.
Scene 6: Audio
As of June 23, no-poaching agreements are illegal in Canada.
Scene 6: Visual
Image on-screen: A closeup of a calendar for June with the “23” highlighted. Image then zooms out to show a figure holding the phone with the calendar on it. Friday June 23rd 2023 is selected as the date and the calendar shows “No-Poaching Agreement” meeting with an “X” beside it, along with a “13:00-14:00 Client Meeting”. Animated text beside the phone reads “NO-POACHING AGREEMENTS ARE ILLEGAL IN CANADA”, with emphasis on the word “illegal”.