By Nojoud Al Mallees
(Bloomberg) — The Canadian government will propose legal changes to ban non-compete agreements in employment contracts at federally regulated workplaces, including banks.
The move, which aims to boost labour mobility, was announced Monday as part of a suite of measures aimed at workers that will be in the upcoming federal budget on Nov. 4. The government will launch consultations on the proposed legislative changes early next year.
Jobs Minister Patty Hajdu announced the planned amendments to the Canada Labour Code. In a news release, the government said the changes will “empower workers to move more freely to a higher-paying career or start their own business.”
The Ontario government banned most non-compete agreements in 2021, while courts have been generally reluctant to enforce these employment clauses. In the U.S., the Federal Trade Commission banned nearly all non-competes in 2024, but abandoned the effort after a court ruled against it this year.
Canada is also promising to expand a union training program that supports apprenticeships in the trades. In the release, the government said the program’s expansion will “ensure there are Canadian workers to build major infrastructure and millions more homes across the country.”
To facilitate foreign credential recognition, the government is earmarking $97 million over five years to create a new fund aimed at helping workers have their credentials recognized faster.
Meanwhile, the budget will include a new re-skilling package that Prime Minister Mark Carney promised in September to support workers affected by U.S. tariffs, which will include a new online platform aimed at matching workers to new jobs and expanded employment insurance benefits.
It will also propose a temporary five-year refundable tax credit for personal support workers equal to 5% of their eligible earnings, up to $1,100. The tax credit will only be available for workers in provinces or territories that won’t have an agreement with Ottawa to boost pay for personal support workers.
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Last modified: October 27, 2025
