Legal Alert | PCA sanctions temporary work sector association for adopting a "no-poach" agreement

On March 10, the Competition Authority (PCA) sanctioned the Portuguese Association of Private Employment and Human Resources Companies (APESPE) for including a no-poach clause in its Code of Ethics. According to the PCA, this clause committed affiliated temporary employment undertakings not to solicit temporary workers from other undertakings in the sector, thereby restricting labour mobility and reducing workers’ bargaining power.

The investigation concluded that the practice was in effect from December 1987 to March 2025, constituting a prohibited decision by an association of undertakings under the Competition Law, as it restricted the commercial autonomy of the member undertakings and distorted the functioning of the labour market.

The proceedings were initiated in February 2025 at the PCA’s own initiative, which in June of the same year issued a Statement of Objections to the association. As a result, APESPE was fined EUR 4,519,000.00 calculated based on the aggregate turnover of its approximately 40 member undertakings. According to the decision, APESPE’s members may be held jointly and severally liable for payment of the fine.

This decision forms part of a broader context of intensified PCA scrutiny of conduct by undertakings or associations of undertakings that may be considered anti-competitive in labour markets, following several previous condemnatory decisions in this area.

Morais Leitão’s Competition Law team is available to answer any questions on this topic.