Vilnius, September 16, 2025 — Lithuania’s Competition Council (CC) has refreshed its guidance for employers on anticompetitive conduct in labour markets, warning that “no-poach” and wage-fixing arrangements can breach competition law and harm both consumers and workers.
The updated guidance, Competition-Restricting Agreements in Labour Markets, expands practical advice for companies on how to avoid infringement risks when recruiting and retaining staff. The watchdog stresses that firms compete not only in selling goods and services but also “to attract or retain employees,” and that agreements not to hire each other’s staff, not to raise wages, or to withhold benefits can unlawfully restrict competition.
From a competition-law perspective, companies that vie for talent may be deemed competitors in the labour market even if they operate in different product markets or at different levels of the supply chain. The memo includes examples of non-compete practices across supply-chain levels, steps to reduce legal risk, and what to do if a business becomes party to — or learns of — a prohibited agreement.
Recognising employers’ legitimate interests — such as protecting training investments, safeguarding non-patented know-how, and enforcing contractual obligations — the CC outlines alternative, less-restrictive tools companies can use without unduly curbing competition. These include narrowly tailored measures that are proportionate in scope, duration, and personnel covered.
The authority reiterates that a competitive labour market underpins better price-quality outcomes and innovation for consumers, while unlawful hiring pacts can depress worker mobility and pay. Employers are encouraged to seek advice and report concerns; the Council lists dedicated contacts for consultations.
