Now Reading: No-poach agreements may curb worker mobility in India
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No-poach agreements may curb worker mobility in India
No-poach agreements between competing firms can restrict employees’ job options, weaken their bargaining power and hold down wages, according to an analysis published by LiveLaw. Such arrangements involve companies agreeing not to recruit or hire one another’s workers, either formally or informally.
The issue gained attention in June 2025, when the European Commission fined Delivery Hero and Glovo a combined €329 million for no-poach agreements and sharing sensitive information on hiring and compensation. The Commission treated workers as participants in a market that can be distorted by collusion.
In India, competition enforcement has largely focused on price-fixing cartels, while labour laws have concentrated on wages, working conditions and collective bargaining. The analysis argues that the Competition Commission of India should examine whether inter-company hiring restraints violate competition principles. It cites research that found workers at firms involved in Silicon Valley no-poach arrangements earned about 6% less, with salaries aligning after the agreements ended.
Indian Opinion Analysis
The central legal challenge for the CCI would be separating unlawful collusion from legitimate business arrangements, such as narrowly drafted restrictions linked to a sale or protection of confidential information. Investigators would also need to identify the relevant labour market, measure the number of employers available to workers and establish whether firms coordinated hiring terms. Evidence could include emails, recruitment policies, compensation data and employee movement before and after an agreement. A future Indian case would therefore set an important test for how competition law treats workers, not just consumers. The key signal will be whether the CCI opens an inquiry into a hiring restraint between competing employers.
Source: livelaw.in
This story was synthesised by AI from the source linked above. Methodology and corrections.
