In September 2025, the Competition and Markets Authority (CMA) published new guidance on 'Competing for Talent', clarifying how competition law applies to recruitment and employment practices. While competition law is often associated with pricing and market share, the CMA makes clear that it also applies to employers when hiring workers or setting pay and working conditions, even where those employers do not compete for customers.
The guidance is aimed at employers (particularly anyone involved in recruitment and retention, including HR professionals) to help them understand the types of conduct that may breach competition law when recruiting or retaining staff, and what steps they can take to stay compliant. This follows the CMA’s stated intention in its 2024/25 annual plan to focus more closely on labour markets, and reflects a broader international trend. The risks are potentially serious: in March 2025, the CMA fined five sports broadcasters over 4 million for anti-competitive labour practices, and an investigation into recruitment practices in the fragrances sector is ongoing.
The guidance identifies three main types of anti-competitive behaviour in labour markets:
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