Lisbon, June 26, 2025 — The Portuguese Competition Authority (AdC) has issued formal charges against a business association in the employment and human resources sector for allegedly including a no-poach clause in its code of ethics. The clause, which prohibited member companies from soliciting or hiring each other’s temporary workers, is considered a restrictive practice that harms competition in the labour market.
According to the AdC, the clause was in force from as early as 1987 until March 25, 2025. The case, identified as PRC/2025/2, stems from an investigation launched in February this year. The probe revealed that the clause may have limited worker mobility, undermined wage growth, and reduced professional opportunities by restricting companies’ freedom to recruit talent.
The AdC’s decision to issue a Nota de Ilicitude (Statement of Objections) marks the end of the inquiry phase and the beginning of a formal proceeding in which the accused association — presumed innocent — will have the opportunity to present its defense. A final decision will follow after this instruction phase.
The authority emphasized that agreements of this nature — known as no-poach agreements — are illegal under Portuguese competition law, as they reduce competition for workers and violate the principles of a fair and dynamic labour market. Such practices have been a growing concern for the AdC, which has prioritized labour market enforcement in its 2025 Competition Policy Priorities.
The AdC’s investigation was supported by information gathered during its outreach campaign “20 years, 20 cities – Competition comes to you!”, an initiative aimed at promoting direct engagement with businesses, public entities, and citizens across Portugal.
This latest accusation is part of the AdC’s broader crackdown on anti-competitive practices in hiring. Since 2020, the authority has issued five decisions sanctioning no-poach practices and published a report and best practice guide to help companies and associations comply with competition rules.
The AdC continues to be one of Europe’s leading competition enforcers in the labour market, advocating for policies that promote worker well-being, economic competitiveness, and legal compliance.
