Like price-fixing agreements between competitors, wage-fixing and no-poaching agreements undermine competition. Maintaining and encouraging competition among employers results in higher wages and salaries, as well as better benefits and employment opportunities for employees.
Wage-fixing agreements
A wage-fixing agreement is when employers agree to fix, maintain, decrease or control wages.
No-poaching agreements
A no-poaching agreement is when employers agree to refrain from hiring or soliciting each other’s employees.
Penalties
The penalty for violating the wage-fixing and no-poaching provisions includes:
- imprisonment for up to fourteen years, and/or
- a fine to be set at the discretion of the court
Further reading
- Enforcement Guidelines on wage-fixing and no poaching agreements
- Immunity and Leniency Programs under the Competition Act