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Portuguese Competition Authority Fines Employment Association for No-Poach Clause

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Photo: Photo by Luís Feliciano on Unsplash

The Portuguese Competition Authority has fined the association of temporary employment companies for implementing a no-poach clause that restricted labor market competition.

11.03.2026 | Portuguese competition authority


The Portuguese Competition Authority (AdC) has imposed a fine of €4,519,000 on the Portuguese Association of Private Employment and Human Resources Companies (APESPE) for adopting a no-poach clause. This clause, which prohibited member agencies from soliciting or recruiting temporary workers from each other, was part of the Association’s Code of Ethics and was in effect from December 1987 until March 2025.

The investigation began in February 2025, initiated by the AdC. Following the issuance of a Statement of Objections in June 2025, APESPE was given the chance to respond. The final decision, which may be appealed, was based on evidence collected during the investigation, including insights from the AdC's outreach initiative aimed at engaging with the business community.

The fine was calculated based on the turnover of APESPE’s member companies, adhering to the Competition Law which limits fines to 10% of the previous year's turnover. The AdC considered the severity and duration of the infringement when determining the fine amount.

The no-poach clause is deemed an anticompetitive practice as it restricts the ability of companies to make independent commercial decisions and adversely impacts workers by limiting their mobility and bargaining power. To combat such practices, the AdC has published guidelines and identified the enforcement against restrictive labor market practices as a priority for 2026, aiming to enhance the competitiveness of companies and the welfare of workers.

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