Author: Norud Al Malis
(Bloomberg) – The Canadian government will propose legal changes to ban non-compete agreements in employment contracts at federally regulated workplaces, including banks.
The move, aimed at promoting labor mobility, is part of a series of measures for workers announced on Monday and will be included in the upcoming federal budget on November 4. The government will launch a consultation on the proposed legislative changes early next year.
Employment Minister Patty Hajdu announced plans to amend the Canada Labor Code. The government said in a press release that the changes will “give workers more freedom to pursue higher-paying careers or start their own businesses.”
The Ontario government banned most non-compete agreements in 2021, and courts have been generally reluctant to enforce these employment terms. In the U.S., the Federal Trade Commission banned nearly all non-competes in 2024, but abandoned that effort this year after a court objection.
Canada has also committed to expanding union training programs and supporting apprenticeships in the industry. The government said in a news release that the program’s expansion will “ensure Canadian workers are available to build major infrastructure and millions of homes across the country.”
To promote the recognition of foreign qualifications, the government will allocate $97 million over five years to establish a new fund aimed at helping workers obtain qualification certification more quickly.
Meanwhile, the budget will include a new retraining program promised by Prime Minister Mark Carney in September to support workers affected by U.S. tariffs, including a new online platform designed to match workers with new jobs and an expansion of employment insurance benefits.
It would also propose a temporary five-year refundable tax credit for personal support workers equal to 5% of their qualified income, up to a maximum of $1,100. The tax credit is only available to workers in provinces or territories that don’t have an agreement with Ottawa to increase wages for personal support workers.
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Last modified: October 27, 2025
