Ontario Passes 'Disconnect from Work' Law and Bans Non‑Compete Agreements

Ontario Passes 'Disconnect from Work' Law and Bans Non‑Compete Agreements

New legislation requires employers to implement disconnect-from-work policies and prohibits non-compete agreements in most employment contracts.

1 min By Sage Legal Solutions
Labour and Employment

Ontario Passes ‘Disconnect from Work’ Law and Bans Non‑Compete Agreements

The Ontario government has passed major amendments to the Employment Standards Act, 2000 through Bill 27, which received Royal Assent on December 2, 2021.


✅ Disconnect from Work Policy Required

Employers with 25 or more employees must now implement a written policy addressing the employee’s right to disconnect from work—defined as:

“Not engaging in work-related communications, including emails, calls, video calls, or reviewing messages, outside of working hours.”

Employers must:

  • Provide the written policy to all existing employees within 30 days of preparing it
  • Provide the policy to new employees within 30 days of their start date

This move aims to improve work-life balance and protect mental health.


❌ Non‑Compete Agreements Banned

The legislation prohibits employers from entering into non‑compete agreements with employees.

A non‑compete agreement is defined as:

“An agreement that prevents an employee from engaging in any business, work, or activity that competes with the employer after the employment relationship ends.”

This reform is intended to protect employee mobility and promote innovation in Ontario’s labour market.


📖 Read the full Bill 27 legislation on the Ontario Legislative Assembly website