Publication
Legal strategies to tackle fraud in early-stage investments in Asia
In the wake of the recent eFishery scandal early-stage investors are recalibrating their approach to due diligence and risk tolerance.
Canada | Publication | June 20, 2023
On May 30, the Competition Bureau released its final wage-fixing and no-poaching enforcement guidelines (the Guidelines). The Guidelines outline the Competition Bureau’s enforcement approach to the new criminal provisions in the Competition Act (Act), which will come into effect on June 23, 2023.
The Bureau’s Guidelines were published following a public consultation process that took place earlier this year. For more information, please see our earlier update on the consultation and draft guidance.
As of June 23, 2023, new Section 45(1.1) of the Act will criminalize agreements or arrangements between unaffiliated employers:
Employers who participate in illegal wage-fixing or no-poach agreements risk significant criminal penalties, including 14 years in jail or fines at the discretion of the court, or both. Employers also face potential civil lawsuits for damages under the Act.
With the new criminal wage-fixing and no-poach provisions coming into effect later this month, the Guidelines provide some welcome insight into the Bureau’s enforcement approach towards wage-fixing and no-poach agreements:
Although the Guidelines’ text was revised following the public consultation earlier this year, the substance remains largely the same. The Guidelines continue to allow the Bureau broad enforcement discretion and leave open key questions such as the treatment of agreements between employers that were entered into before June 23, 2023.
Going forward, wage-fixing and reciprocal no-poach agreements and clauses in commercial agreements must be carefully drafted. To ensure these types of agreements comply with the new provisions and can benefit from the ancillary restraints defence, they should be carefully considered to ensure they are reasonably necessary to the larger agreement or arrangement to which they are related. Although the Guidelines provide some guidance to parties regarding the Bureau’s enforcement approach, they are not legally binding and the burden is ultimately on the parties to demonstrate – with evidence – that the restraint can shelter under this defence. Given the risk of criminal liability, employers should seek legal advice on applying the defence in the particular circumstances of each agreement.
Agreements that aren’t caught by the criminal provisions may still be examined by the Bureau under the civil provisions of the Act where there is a substantial lessening or prevention of competition in a market.
Section 4(c) of the Act contains an exception for agreements between employers that pertain to collective bargaining with their employees in respect of salary or wages and terms or conditions of employment.
The Guidance suggests that arrangements between franchisees to recoup training costs related to “poached” employees would not normally be considered problematic by the Bureau under the criminal provisions of the Act.
Publication
In the wake of the recent eFishery scandal early-stage investors are recalibrating their approach to due diligence and risk tolerance.
Publication
As we stand on the cusp of transformative change within the energy sector, anticipation builds around the UK government’s impending decision on the Review of Electricity Market Arrangements (REMA). This briefing provides a recap of the proposals made to date and looks at the potential future impact of the REMA proposals on market players.
Publication
Following the launch of the new Electricity Law on 30 November 2024, which took effect on 1 February 2025 (Electricity Law 2024), Decision No. 768/QD-TTg (Decision 768) issued on 15 April 2025 by the Prime Minister of Vietnam approved the revised National Power Development Plan VIII (PDP 8) for the period 2021–2030, with a vision to 2050. This decision replaces the previous Decision No. 500/QD-TTg, dated 15 May 2023.
Subscribe and stay up to date with the latest legal news, information and events . . .
© Norton Rose Fulbright LLP 2025