The proposal
Federal budget-implementation legislation proposes a new Canada Labour Code division dealing with non-compete clauses and other employment-related restrictions. The text would prohibit federally regulated employers from agreeing to or imposing covered restrictions and would make them void.
The proposal also bars reprisals against employees who refuse a covered restriction and places the burden on an employer to establish that a clause falls outside the prohibition or within an exemption.
The exceptions and timing
The draft includes exceptions connected with a sale or transfer of a business, chief executive officers and specified executives reporting directly to the chief executive. Regulations could add other positions or classes of restrictions.
This is not yet an operative workplace rule. The division would come into force only on a date fixed by order in council, and the bill’s parliamentary status and any later regulations remain material.