The ACM warned employers that non-hiring regulations harm employees and society and are therefore prohibited under European and Dutch competition rules.
The Authority stated that, some employers, employers’ organizations, and trade associations are in favor of arrangements about not recruiting or even not hiring each other’s employees. However, such non-recruitment and non-hiring arrangements are prohibited, as are mutual arrangements for restricting wage growth outside of collective agreements. That is because those kinds of mutual arrangements among employers disrupt the proper functioning of the job market, and lead to lower wages and less favorable terms of employment and working conditions. Such arrangements may offer short-term savings in employers’ salary costs, but they have negative effects on employees and on society at large, especially in the long term. For example, they could reduce technological innovation and the incentive to efficiency in a sector.
Finally, the authority stated that the scarcity in skilled staff observed in a well-functioning labor market creates pressure to increase wages and improve employment and working conditions, thus enabling employers to attract and retain employees more, thus preserving the competitive environment in the market.
(ACM- 16.02.2022)
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NAZALI TAX & LEGAL |