Non-Solicitation Agreements Between Companies Can Violate Competition Law

The Belgian Competition Authority (BCA) has sanctioned Securitas, G4S and Seris for various malpractices in the private security sector. The reasons include price-fixing, bid rigging as well as "no-poach" or "non-solicitation" agreements, all in a period from 2008 to 2020. According to the BCA, These practices have as effect of preventing or restricting healthy competition between companies and go against Article IV.1 of the Code of Economic law. The BCA imposed fines of over 47 million euros to the companies concerned.

1. What is the impact of no-poach agreements on employment law in this case?

In this case, the no-poach agreement is a secret agreement between companies not to compete for each other's employees: a no-hire agreement. In a healthy and well-functioning labour market, employers compete for workers and entice them to switch from employers. The non-poach agreement affects an employee's ability (or freedom) to move from one company to another.