Professional bodies should scrutinise rules that may hinder workers from moving between employers, competition watchdogs warned, after Chartered Accountants Ireland axed a restriction on trainees seeking new jobs.
Up to recently, the accountants’ organisation barred trainees from interviewing for jobs with other firms without their current employer’s permission, which the recruiting company then had to confirm.
However, Chartered Accountants Ireland agreed to axe the rule when the Competition and Consumer Protection Commission (CCPC) raised the issue with it following a complaint that the regulator received in June.
Professional bodies and trade associations should review their policies to ensure they do not restrict competition, the commission warned on Tuesday.
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“Any rules or agreements requiring advance permission to interview, or discouraging hiring among members will attract scrutiny and may lead to enforcement action,” said a CCPC statement.
The issues is firmly on the commission’s radar, Craig Whelan, its director of anti-trust stressed.
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“We are warning firms and professional associations to review their practices,” he said.
“Where we find anti-competitive conduct, we will not hesitate to take enforcement action.”
Following the CCPC’s intervention, Chartered Accountants Ireland’s rules now only require employer approval if a trainee accepts a new post and is ready to move, not before they do interviews or explore new opportunities.
The accountancy body has since updated the policy on its website and told trainees and the firms that hire them.
It has also put a complaints procedure in place to deal with transfer issues.
The change removes a “significant barrier to competition”, said the CCPC.
It maintains proportionate requirements, such as ensuring trainees complete outstanding training requirements and resolve obligations to pay fees covered by their original firm, before moving, the regulator noted.
Mr Whelan acknowledged that Chartered Accountants Ireland responded quickly and constructively when the commission intervened.
The organisation said the changes reflected its commitment to supporting students’ mobility while safeguarding the interests of all parties.
“We are in the process of informing training firms and students,” noted a statement.
Chartered Accountants Ireland added that the original rule was meant to uphold the training contract system’s integrity.
The body admitted more than 1,200 newly qualified accountants into its membership this year, it added.
Mr Whelan argued that the jobs market was “no exception” to the rule that competition produces better results.
“When firms compete to hire and retain talent, workers benefit through higher pay, better conditions and greater career opportunities,” he said.
