Portuguese Competition Authority Targets No-Poach Clauses in Labour Market
The Portuguese Competition Authority has issued a Statement of Objections regarding anti-competitive no-poach clauses in the labour market, which restrict worker mobility among member companies.
25.06.2025 | Portuguese competition authority
The Portuguese Competition Authority (AdC) has taken significant action by issuing a new Statement of Objections related to anti-competitive practices in the labour market. This case revolves around a no-poach clause included in the Code of Ethics of a business association in the employment and human resources sector, which has been in effect since 1987 until March 25, 2025.
The no-poach clause prevented member companies from soliciting each other’s temporary workers, thereby limiting worker mobility and infringing on competition law. The investigation was initiated in February 2025, and the AdC's findings were bolstered by its outreach initiative aimed at engaging with various stakeholders across Portugal.
With the investigation phase now concluded, the AdC has formally issued a Statement of Objections, marking the beginning of the procedural phase where the association involved can defend itself against the allegations. The AdC emphasizes that such clauses are illegal as they restrict companies' hiring freedom and adversely affect workers' mobility and wage progression.
In its efforts to combat anti-competitive practices in the labour market, the AdC has made this issue a priority for 2025, aiming to protect the interests of citizens and ensure a competitive labour market. The authority has previously published guidelines to help companies avoid such illegal agreements and has strengthened its enforcement actions since 2020, having already issued multiple infringement decisions related to no-poach practices.