Press Release 04/2025
June 26, 2025

The Investigation
The Portuguese Competition Authority (AdC) has issued a new Statement of Objections concerning anti-competitive practices in the labour market.

The case concerns the inclusion of a no-poach clause — a non-solicitation and/or non-recruitment obligation — in the Code of Ethics of a business association in the employment and human resources sector.
This clause prevented member companies from soliciting each other’s temporary workers, thereby restricting worker mobility.
The investigation was launched in February 2025. The AdC found evidence that the clause was in effect from 1987 until 25 March 2025.
Although the case was opened ex officio, the evidence gathered was further supported by the AdC’s nationwide outreach initiative “20 years, 20 cities – Competition at your doorstep!”, which fosters direct engagement with companies, public entities and citizens across Portugal.
The AdC has now concluded the investigation phase and issued a Statement of Objections, thus initiating the formal proceedings.
The case is registered under PRC/2025/2 and is public pursuant to Article 32 of the Competition Act.

The Statement of Objections
When, following an investigation, the AdC finds reasonable grounds to suspect an infringement of competition law, it issues a Statement of Objections.
During the ongoing procedural phase, the association concerned — which benefits from the presumption of innocence — is entitled to exercise its rights of defence, including the right to be heard on the facts, the evidence gathered, and any potential sanction.
Following this phase, the AdC may adopt a final decision.

The Practice at Stake
The investigated conduct constitutes a decision by an association of undertakings, whereby a no-poach clause was adopted in the association’s Code of Ethics.
Such clauses or agreements are prohibited by law, as they restrict companies’ freedom to hire and directly harm workers by limiting their mobility, bargaining power and wage progression.
In September 2021, the AdC published a Best Practices Guide with recommendations to help companies and associations avoid these types of agreements.
Restrictions on competition in the labour market harm competitiveness, undermine worker welfare, and negatively affect the national economy.
As such, tackling anti-competitive labour market practices is among the AdC’s Competition Policy Priorities for 2025, with the aim of safeguarding the proper functioning of the labour market and defending the interests of citizens.

What is a no-poach agreement?
No-poach agreements, or non-solicitation pacts, are arrangements between companies not to hire or directly approach each other’s workers. 
These agreements — prohibited under competition law — restrict companies’ autonomy in shaping their human resources policies and may occur across all sectors of the economy.
Since 2020, the AdC has strengthened its enforcement in this area and has already issued five infringement decisions concerning no-poach practices.
In 2021, it published a Report and Best Practices Guide to assist companies and associations in identifying and preventing such illegal conduct.
The AdC has been at the forefront of competition enforcement in labour markets at European level.