Extending the ban on non-compete agreements to more businesses will 'promote labour mobility' and 'strengthen competition,' the Liberals said in the budget this week.

Ottawa wants to restrict the use of non-compete agreements for employees of federally regulated businesses, taking action after Ontario updated its own labour laws and banned contracts that prevent people from joining rival companies.

In Canada, employment law is split between the provinces and Ottawa, which means Ontario’s crackdown in 2021 only prohibited employee non-competition agreements for certain businesses. Crucially, it did not have an impact on staff at federally regulated banks, telcos and airlines, even if they are based in Ontario.

Because a gap remains, some of Canada’s largest companies still have leewa

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