New Guidance on Avoiding Anti-Competitive Behaviour in Recruitment
On 9 February 2023 the Competition and Markets Authority (CMA) published some new guidance aimed at reminding employers and recruiters of their legal obligations to avoid collusion when it comes to employee pay, working conditions and the hiring of staff.
Employers are required to comply with competition law when setting wages and working conditions for new and existing employees, as well as policies on recruitment.
The new materials cover no-poaching agreements, where businesses agree not to hire each other’s employees; wage-fixing agreements, where businesses who compete for the same types of employees fix salaries; and information sharing about the terms and conditions of employees’ contracts.
Businesses that are found, following a CMA investigation, to have breached competition law could be subject to significant financial penalties and ignorance is no defence.
The guidance suggests that employer provide recruitment staff with training on competition law and how it applies in the recruitment context and recruiters should therefore familiarise themselves with the guidance and consider offering training as appropriate.