Competition and Employment Law Issues

This practice note considers the application of UK competition law to employment and labour market issues. In particular, it considers:

• the Competition and Markets Authority’s (CMA) ongoing enforcement focus on labour markets and related guidance for employers, HR professionals and recruiters
• transactional and merger control considerations relating to employment and labour market restrictions
• the legal framework applicable to employment and labour market restrictions under the Chapter I prohibition
• competition law issues arising from information sharing between competing employers in relation to pay, benefits and other employment-related terms
• wage-fixing and no-poach agreements between businesses competing for workers, including related issues concerning non-compete and non-solicitation clauses
• wider international developments concerning competition law restrictions affecting workers and labour mobility

This practice note therefore provides a high-level overview of the key competition law issues that may arise in the employment context. As competition authorities develop their scrutiny of labour market practices, businesses should ensure that recruitment, retention and remuneration practices are assessed through an appropriate competition law compliance framework.

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