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 prohibited member companies from soliciting each other’s temporary workers, thereby limiting worker mobility.

The investigation, which began in February 2025, revealed that this no-poach clause had been in effect since 1987 until its recent removal on March 25, 2025. The AdC's findings were bolstered by evidence collected during its nationwide outreach initiative, “20 years, 20 cities – Competition at your doorstep!”, aimed at engaging with various stakeholders across Portugal.

With the investigation phase now concluded, the AdC has formally initiated proceedings by issuing a Statement of Objections. This document indicates that the AdC has reasonable grounds to suspect a violation of competition law. The association involved is entitled to defend itself during this procedural phase, which includes the right to contest the facts and evidence presented against it.

The no-poach clause in question represents a decision made by an association of companies, which is illegal as it restricts the freedom of companies to hire and adversely affects workers by limiting their mobility and bargaining power. The AdC has emphasized that such restrictions harm competitiveness and worker welfare, ultimately impacting the national economy.

As part of its commitment to combat anti-competitive practices in the labour market, the AdC has made this issue a priority in its Competition Policy for 2025. The authority has previously published a Best Practices Guide to help companies avoid entering into such illegal agreements. Since 2020, the AdC has intensified its enforcement efforts in this area, having already issued five infringement decisions related to no-poach practices.