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Title page 1
Contents 5
Abstract/Résumé 4
Executive Summary 6
1. Introduction 7
2. The economics of post-employment restraints 8
3. The regulation of post-employment restraints in Canada 9
4. The prevalence and the characteristics of post-employment restraints in Canada 11
4.1. The prevalence of non-compete and related clauses is high and rising 11
4.2. Non-compete clauses are being deployed in a fashion that is difficult to reconcile with the traditional view 14
4.3. Restraint clauses are often bundled together and used indiscriminately 16
4.4. Non-compete clauses appear to deter job mobility and business creation 17
4.5. A large share of non-compete clauses appear unenforceable under Canadian law 18
4.6. There is evidence of (firm-to-firm) no poaching and wage fixing agreements 20
5. Concluding remarks 21
References 22
Figure 1. Non-compete and related clauses are relatively common in Canada 12
Figure 2. The use of non-compete clauses is rising in Canada 13
Figure 3. The use of non-compete clauses extends well past executives and specialized professionals in Canada 15
Figure 4. Non-compete and related clauses are frequently grouped together and applied to all workers in Canada 16
Figure 5. Non-compete clauses could have meaningful effects on job mobility and business entry in Canada 17
Figure 6. Reported reasons for complying with non-compete clause in Canada 18
Figure 7. Non-compete clauses can be expansive in scope and fall short of legal requirements in Canada 19
Figure 8. Employees often believe non-compete clauses are binding even when they fall short of legal requirements in Canada 20
Figure 9. Knowledge of no-poaching or wage fixing agreements is widespread in Canada 21
Boxes 5
Box 1. Contractual clauses regulating post-employment activity 8
Box 2. The 2021 reform of non-compete clause in Ontario 10
Box 3. The OECD worker and employer surveys on non-compete and related clauses 13
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