OTTAWA — The head of the Competition Bureau is urging provincial and territorial ministers to limit the use of non-compete agreements for employees.
In an open letter Thursday, Jeanne Pratt, the interim commissioner of competition, says non-compete agreements can prevent workers from changing jobs or starting a competing business in their area of expertise.
Pratt goes on to say that while these restraints can be justified in limited circumstances, evidence shows that they are unusually prevalent in Canada.
Non-compete agreements can restrict workers from joining a rival company or starting a competing business for a set period of time after leaving a job.
Ontario already prohibits most non-compete agreements, subject to certain exceptions, while the federal government has proposed similar limits in federally regulated businesses.
Pratt says workers who are free to move between companies are better able to find jobs that match their skills and negotiate better pay and working conditions, while greater job mobility helps businesses recruit staff.
“To succeed in a changing economy, Canada needs workers and businesses that can adapt and grow,” Pratt said in a statement.
“I encourage governments to remove unnecessary barriers to labour mobility, so that workers can find better jobs, businesses can expand and innovation can thrive.”
This report by The Canadian Press was first published Oct. 29, 2026.
