Temporary Employment Industry Group Fined €4.52 Million in Portugal Over Worker Hiring Restrictions

Key Takeaways

• Association Sanctioned for Labour Market Restriction: Portugal’s competition regulator fined the Portuguese Association of Private Employment and Human Resources Companies (APESPE) for adopting a no-poach clause affecting temporary workers.
• Clause Lasted Nearly Four Decades: The restriction, embedded in APESPE’s Code of Ethics, prevented member companies from recruiting workers employed by other members from December 1987 until March 2025.
• €4.52 Million Fine: The penalty was calculated based on the turnover of APESPE’s member companies and reflects the gravity and duration of the infringement.

Deep Dive

Portugal’s competition regulator announced that it has fined the Portuguese Association of Private Employment and Human Resources Companies (APESPE) €4.52 million after concluding the group maintained a no-poach clause that restricted hiring between its member companies for decades.

According to the authority, the clause was written into APESPE’s Code of Ethics and required member agencies not to solicit or recruit temporary workers employed by other member firms. The provision remained in force from December 1987 until March 2025, a period the regulator said significantly shaped hiring practices across the sector.

Competition officials determined that the rule constituted an anticompetitive decision by an association of undertakings because it limited the ability of companies to compete for workers.

A Rule that Shaped Hiring Across the Sector

While no-poach agreements are sometimes framed as professional standards or industry practices, competition authorities have increasingly viewed them as restrictions that distort labor markets.

In this case, the Portuguese regulator found that the clause effectively discouraged agencies from recruiting workers already employed by competing member companies, limiting employee mobility and reducing workers’ bargaining leverage.

Authorities said such arrangements can also affect career progression opportunities by making it harder for workers to move between employers in search of better conditions.

Investigation Launched Last Year

The case began in February 2025, when the Portuguese Competition Authority opened an investigation on its own initiative. By June 2025, the regulator issued a formal Statement of Objections to APESPE, outlining the alleged infringement and giving the association an opportunity to respond. The association submitted written observations as part of the process.

Following its investigation and review of the evidence gathered, the authority issued a final infringement decision. The decision may still be challenged through judicial appeal.

The regulator said information that contributed to opening the case emerged during outreach efforts tied to its initiative “20 years, 20 cities – competition comes to you.” The program aims to strengthen engagement with businesses and communities across Portugal through regional sessions focused on competition awareness.

How the Fine Was Calculated

The authority imposed a penalty of €4,519,000 on the association.

Under Portugal’s Competition Law, fines imposed on associations of undertakings may not exceed 10 percent of the turnover generated by their member companies in the year preceding the authority’s decision.

In determining the final amount, regulators said they considered the seriousness and duration of the infringement along with other criteria outlined in their published methodology for calculating fines.

APESPE represents around 40 member organizations, most of which operate as temporary employment agencies.

Labour Market Competition Under Growing Scrutiny

The decision reflects increasing attention from competition regulators worldwide on agreements that affect hiring and worker mobility.

The Portuguese authority has previously warned companies about the risks posed by such arrangements. In September 2021, it published a report and guide outlining best practices designed to help businesses avoid anticompetitive agreements in labor markets.

Officials say enforcement in this area will remain a priority. The authority has identified the fight against restrictive labor market practices as one of its competition policy priorities for 2026, arguing that such conduct can harm workers, weaken competition between companies, and ultimately affect the broader economy.

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