NewsCMS Law-Now: A cartel might not just be about prices, but also about employees

Prohibited anticompetitive agreements do not necessarily have to be just cartel agreements on product pricing or market sharing. Employers can also enter into agreements with each other to prevent their employees from leaving to work for competitors or to fix wages. Did you know these agreements can also be considered anticompetitive and are thus prohibited? If you are interested in the competitive aspects of labour market agreements, read today’s article on a less common type of anticompetitive agreement to align remuneration or not to solicit.

The two most common types of anticompetitive behaviour in the labour market are agreements between employers not to hire employees from each other (no-poaching) and not to compete on wage conditions and other employee benefits (wage-fixing). These agreements can negatively impact the labour market to the detriment of employees and even affect final consumers. Therefore, the competition aspect must also be considered in the labour market, as anticompetitive behaviour can also occur here, especially in the form of cartel agreements between employers.

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The article was written by CMS partner Tomáš Matĕjovský, senior associates Lenka Krutáková and Jakub Kabát, and was first published on CMS Law-Now on 14 June, 2023, available here.