NEW – ON: Non-compete agreements prohibited in proposed legislative changes

The Ontario government introduced new legislative changes on October 25, 2021, for the Working for Workers Act 2021 that it says, if passed, would “better protect, support, and attract workers to the province”.

The proposed legislation will prohibit employers from using non-compete agreements. These contracts often restrict employees from taking new jobs in another business in the same field after leaving a company. The proposed changes, according to the Ontario government, would help workers advance their careers and earn more money, but still enable employers to protect their intellectual property through narrower clauses.

The legislation also includes labour initiatives that are designed to support businesses that continue to suffer from the impacts of COVID-19. As announced on October 6, 2021, Ontario’s Workplace Safety and Insurance Board is cutting premium rates in 2022 by $168 million, bringing the total reduction in premiums since 2018 to $2.4 billion. If passed, this legislation would allow for a significant portion of the Board’s current reserve, currently valued at $6.1 billion, to be distributed to employers.

The CPA will continue to monitor the passage of the legislation and report on relevant initiatives impacting the industry. Analysis conducted by other businesses and sectoral organizations will also be reported to members as it arises.

Learn more information on the Working for Workers Act 2021 here.