The Competition Bureau Canada, in collaboration with the Public Prosecution Service of Canada (PPSC), has revised its Immunity and Leniency Programs to incorporate new provisions under the Competition Act that target wage-fixing and no-poaching agreements.
Effective June 23, 2023, these criminal conspiracy provisions prohibit businesses from entering into agreements that manipulate employment terms. Specifically, companies are now barred from:
- Agreeing to fix, maintain, decrease, or control wages or other employment terms.
- Agreeing to refrain from soliciting or hiring each other’s employees.
The update to the programs aims to enhance transparency and predictability for applicants and strengthen the capabilities of both the Bureau and the PPSC in prosecuting such cases.
Key features of the programs
The Immunity and Leniency Programs are pivotal tools for the Bureau in identifying and curtailing unlawful activities under the Competition Act. These programs offer immunity from prosecution or reduced penalties to individuals or businesses that cease their involvement in illegal activities and provide substantial cooperation in investigations.
The Bureau administers these programs with the PPSC, which handles the prosecution of federal offences.
According to the Competition Bureau, “The programs have consistently proven to be the Bureau’s most effective tools for detecting and stopping unlawful conduct prohibited by the Competition Act.”
Potential for immunity or leniency
Under the Immunity Program, the first entity to disclose anti-competitive activities, such as bid-rigging or price-fixing, to the Bureau and provide evidence may be granted immunity from prosecution. If immunity is not applicable, the Leniency Program offers reduced penalties to those who cooperate fully and plead guilty to offences under the Competition Act. The Bureau will recommend to the PPSC that the leniency applicant’s sentence be mitigated. If the first leniency applicant is a corporation, individuals from that corporation may also qualify for immunity.
The Bureau and the PPSC will continue to review and adjust these programs as necessary in response to evolving circumstances and judicial decisions.
Encouragement to come forward
Businesses and individuals engaged in prohibited activities under the criminal provisions of the Competition Act are encouraged to come forward, share their information, and cooperate fully with investigations and prosecutions. Legal advice is recommended for those considering participation in the programs.
For HR professionals, employers, and C-suite leaders, these updates signify a reinforced commitment by regulatory bodies to maintain fair labour practices and competitive business environments. The amendments to the Immunity and Leniency Programs are a clear message that anti-competitive behaviour in employment practices will not be tolerated.