Lisbon, March 12, 2026 — Portugal’s Competition Authority (AdC) has fined the Portuguese Association of Private Sector Employment and Human Resources Companies (APESPE) €4.519 million for adopting a no-poach clause that restricted competition in the labor market.
The AdC found that the clause, included in APESPE’s Code of Ethics, required member temporary employment agencies not to recruit or entice temporary workers employed by other member companies. The authority concluded that the practice limited labor mobility and competition among agencies.
According to the AdC, the clause was in force from December 1987 until March 2025 and applied to companies that are members of the association, which represents around 40 temporary employment agencies.
The investigation was launched ex officio in February 2025. In June 2025, the authority issued a formal statement of objections, allowing APESPE to respond and present its defense before the regulator adopted its final decision.
The AdC determined that the conduct constituted a decision by a business association restricting competition, as no-poach agreements reduce companies’ independence in setting hiring strategies and negatively affect workers by limiting bargaining power, job mobility and career progression.
The fine was calculated based on the turnover of APESPE’s member companies, in line with Portuguese competition law, which caps penalties at 10% of the turnover generated in the year prior to the final decision.
The authority noted that restrictive practices in labor markets can harm competition, weaken worker welfare and damage the broader economy. It added that tackling such practices is one of its competition policy priorities for 2026.
The decision may still be subject to appeal.
