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Non-compete and related clauses in Canada

Author

Listed:
  • Dan Andrews
  • Andrea Garnero
  • Sara Holttinen

Abstract

This paper provides new evidence on the prevalence and potential effects of non-compete and related clauses in Canada using OECD surveys of workers and firms. It finds that these clauses are widespread, increasingly used, and often applied beyond roles where they are most justified. Many appear overly broad and legally weak, yet a substantial share of workers report having been prevented from changing jobs or starting a business. Their impact is reinforced by behavioural factors, including reputational and ethical concerns. The findings also bring into closer focus the use of (firm-to-firm) no-poaching and wage fixing agreements that restrict labour market competition and, thus, raise broader concerns for the Canadian Competition Bureau.

Suggested Citation

  • Dan Andrews & Andrea Garnero & Sara Holttinen, 2026. "Non-compete and related clauses in Canada," OECD Economics Department Working Papers 1872, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1872-en
    DOI: 10.1787/e3d104ea-en
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    Keywords

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    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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