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Ontario brings legislation to ban Non-Compete Agreements in employment

Working for Workers Act: Ontario trying to create a better future for workers

TORONTO: The Ontario government is introducing legislation that, if passed, would better protect, support, and attract workers to the province. These proposed new measures position Ontario as a first mover in charting the path forward as the way people work changes.

The proposed changes would promote healthy work-life balance and will further enable competitiveness by banning unfair non-compete agreements that are used to restrict work opportunities, suppress salary increases and wage growth.

Monte McNaughton, Minister of Labour, Training and Skills Development is introducing the Working for Workers Act, 2021, which would help make Ontario the top choice for people around the world to live, work and raise a family.

“COVID-19 has changed the way we work, leaving too many people behind, struggling to put food on the table and make ends meet for their families,” said Minister McNaughton. “Our government is working for workers. To do so, we must act swiftly and decisively to put workers in the driver’s seat and begin rebalancing the scales. Today’s proposed legislation shows Ontario is ready to lead the way into the workplaces of tomorrow, and create the conditions that will make talented, innovative people want to work in our great province.”

If passed, this proposed legislation would make Ontario the first jurisdiction in Canada to make it easier for people to relax and spend quality time with their loved ones. By requiring employers with 25 employees or more to develop disconnecting from work policies, Ontario is prioritizing workers’ mental health and family time. These workplace policies could include, for example, expectations about response time for emails and encouraging employees to turn on out-of-office notifications when they aren’t working.

The proposed legislation will also prohibit employers from using non-compete agreements. These types of contracts often restrict employees from taking new jobs with another business in the same field after they leave the company. The proposed changes would ban this unfair restriction to help workers in Ontario advance their careers and earn more money. This would also give the province a competitive advantage in attracting global talent. Employers would still be able to protect their intellectual property through narrower clauses.

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