The Competition Authority (AdC) announced on Thursday that it has issued another accusation concerning restrictive practices in the labor market. The issue revolves around a clause that “prevented associated companies from enticing each other’s workers, thereby limiting professional mobility.”
“This involves the inclusion of a non-solicitation and/or non-recruitment clause of temporary workers (no-poach) in the Code of Ethics of an association of companies in the employment and human resources sector,” as stated in a press release sent to newsrooms.
According to the AdC, “this clause prevented associated companies from enticing each other’s workers, limiting professional mobility.”
The investigation “was opened in February 2025” and the AdC “identified indications that the clause was in effect from 1987 to March 25, 2025.”
“Although the process was initiated officially, the indications collected were strengthened by the AdC’s initiative ’20 years, 20 cities – competition is coming to you!’, which promotes direct contact with companies, public entities, and citizens across the country,” the same note adds.
What was the practice in question?
According to the AdC, the “investigated practice constitutes a decision by an association of companies, through which a no-poach clause was adopted in the association’s Code of Ethics.”
In practice, “this type of clause or agreement is prohibited by law, as it restricts the autonomy of companies in hiring and directly harms workers, limiting mobility, bargaining power, and wage progression.
“Restrictions on competition in the labor market harm competitiveness, the well-being of workers, and the national economy,” concludes the AdC.
Find out what ACT has to say on this topic.
Notícias ao Minuto | 08:30 – 04/05/2025
What is no-poach?
No-poach agreements (or non-hiring agreements) are “understandings between companies that commit not to hire or directly approach each other’s workers.”
“These agreements, prohibited by Competition Law, limit the business autonomy in defining their human resources policy and can arise in any sector of activity,” it states.
The AdC says it has been strengthening its actions in this area and has already issued five convictions for no-poach practices.
“Restrictions on competition in the labor market harm competitiveness, the well-being of workers, and the national economy. Therefore, the fight against these practices was included in the AdC’s Competition Policy Priorities for 2025, aiming to ensure the proper functioning of the labor market and defend the interests of citizens,” the AdC points out in the same note.
[News updated at 14:42]
The Court of Auditors (TdC) found that TAP executed several contracts without the mandatory prior approval, violating the law governing public expenditure, and referred the findings to the Public Prosecutor’s Office.
Lusa | 17:00 – 23/06/2025
