This article is the next installment in our series on the topics discussed at the September meeting of the Czech Competition Authority with the ICC Competition Commission. Another relatively new issue has come to the forefront of interest among competition authorities – anti-competitive agreements on the labour market.
The Czech Competition Authority confirmed that it does not plan any new legislation in this area, as the current Competition Act already enables it to prosecute labour market cartels. At the same time, the message was clear: “the period of prevention is over.” In the coming years, the authority intends to focus on active enforcement against anti-competitive agreements affecting employment relationships.
Types of labour market cartels
Agreements between employers – the “buyers of labour” – can, according to the Czech Competition Authority, be as harmful as traditional price-fixing cartels. These typically include:
- No-poach agreements – commitments by companies not to solicit or hire each other’s employees / non-solicitation agreements – commitments by competitors not to approach or contact each other’s employees;
- Wage-fixing agreements – arrangements to align, cap, or otherwise coordinate wage levels or employee compensation.
The Czech Competition Authority warns that such agreements reduce wages, restrict employee mobility, and may hinder efficiency and innovation across entire industries.
Practice of competition authorities to date
The Czech Competition Authority has systematically focused on labour market agreements since 2023. It first published an information paper titled “Competition Aspects of Labour Market Agreements,” noting that even arrangements between employers may constitute prohibited cartels. In 2023–2024, it resolved several cases through so-called competition advocacy, requiring certain professional associations to remove problematic provisions from their codes of ethics.
In 2024, however, the Czech Competition Authority launched its first administrative proceeding for an alleged no-poach agreement between Duvenbeck and EuWe, marking a clear shift from prevention to active enforcement. (Notably, the investigation was triggered by an unannounced dawn raid following an anonymous phone complaint from a disgruntled employee – as we have reported here.)
In June 2025, the European Commission imposed its first fines for no-poach agreements – EUR 329 million in total on Delivery Hero and Glovo. The Commission classified such agreements as “by object” restrictions, i.e. conduct as serious as price cartels. Around the same time, the Slovak Antimonopoly Office issued its first decision in this area, fining a trade association for an ethical code prohibiting the poaching of employees. Although the fine was symbolic, it sent a clear warning to the market.
Where the Czech Competition Authority is headed
The Czech Competition Authority has now announced that it intends to take a tough approach against labour market cartels – not only among direct competitors, but also among companies that compete solely on the labour market (for example, in the demand for similar types of professions). The authority plans to use its full enforcement toolkit – from dawn raids to formal proceedings – and will scrutinize not only ethical codes but also contractual or other arrangements between companies that may contain elements of no-poach or wage-fixing.
Priority sectors include sports, IT, healthcare, and specialized construction trades, though the Czech Competition Authority notes that problematic conduct may also arise among less qualified but irreplaceable workers with unique know-how.
Risks for Employers
- HR under scrutiny: Internal codes, recruitment policies, and HR guidelines may contain elements viewed by the Czech Competition Authority as coordination between competitors (e.g. limits on hiring or wage alignment).
- Sanctions and reputation: Even agreements that bring no direct financial gain to companies may be treated as serious cartels.
- Dawn raids targeting HR: The Czech Competition Authority may, during dawn raids, examine HR records and communication between HR staff. However, HR professionals are often the least prepared for such situations – competition compliance training has so far focused mainly on sales and procurement teams, not on human resources departments.
What Companies Should Do
- Audit HR processes and documents – review recruitment policies and employment-related contracts from a competition law perspective.
- Include labour markets in compliance training – HR topics should be an integral part of competition compliance programmes.
- Train HR professionals and management – to help them recognize high-risk communications or arrangements.
- Implement internal reporting tools – allow employees to anonymously report potential risks.
Conclusion
Labour market agreements are emerging as a new test of corporate compliance maturity. The position of the competition authority shows a clear shift from guidance to enforcement. Companies that successfully integrate HR compliance into their competition law frameworks will gain a clear advantage – both legally and reputationally. And we are ready to help you take the right steps to identify, prevent, and manage these new risks.
