The Competition Bureau of Canada has issued an open letter calling on provincial and territorial governments to restrict the use of non-compete agreements, which are seen as barriers to labour mobility and economic growth.

Interim Commissioner of Competition, Jeanne Pratt, emphasized that allowing workers the freedom to change jobs or start their own businesses can lead to better pay, improved working conditions, and increased innovation. Non-compete clauses currently affect millions of private-sector workers in Canada, often extending to roles where they are not justified.

OECD surveys indicate that a significant percentage of private-sector employees in Canada are bound by non-compete agreements, which can discourage individuals from seeking better employment opportunities. While some provinces, like Ontario, have already taken steps to limit these agreements, the Bureau encourages others to follow suit.

Pratt's message highlights the need for governments to remove unnecessary barriers to labour mobility, thereby fostering a more competitive environment that benefits both workers and businesses.