First Ruling on Labor Market Cartels by Slovak Competition Authority
The Slovak competition authority has issued its first ruling regarding cartel agreements in the labor market, confirming that agreements to not poach employees restrict competition.
20.09.2026 | Slovak competition authority
The Slovak competition authority, known as Rada PMÚ, has made a significant ruling on August 26, 2026, regarding a case involving the Slovak Association of the Fuel Industry and Trade. This case centered on an ethical code that prohibited members from poaching each other's employees.
The authority confirmed that such agreements constitute a restriction of competition by dividing the market and limiting the supply of labor. These non-poaching agreements can lead to reduced wages and poorer working conditions for employees, ultimately affecting the quality and availability of goods and services for consumers.
This ruling marks the first time the PMÚ has addressed cartel agreements in the labor market. In light of the precedent set by this decision, the authority reduced the initial fine from €10,000 to €1,000, considering the unique aspects of the case.
The decision clarifies that agreements among businesses to refrain from hiring each other's employees can be serious violations of competition law. It serves as an important guideline for businesses and participants in the labor market regarding acceptable conduct under competition rules.
The PMÚ views this ruling as a crucial signal to businesses that non-poaching agreements are significant legal violations. The decision became final and enforceable on September 3, 2026, and can be subject to judicial review.
