CADE investigates information sharing between companies’ HR departments

Camila Vieira Guimarães
Lawyer at Marcos Martins Advogados

The Administrative Council for Economic Defense (CADE) has opened an investigation into companies in the health sector who, through their human resources departments, were exchanging contractual data on their employees.

The companies allegedly made agreements to fix salaries, adjustments and benefits on the employees’ remuneration.

CADE took the view that although the companies compete in the manufacture of products and services, they also compete with each other in the hiring of staff, so competitive practices apply.

To the extent that they exchange personal and sensitive information about their employees in order to price labor in the market, they are treated as a cartel, liable for liability under antitrust law.

This is the first CADE investigation involving companies’ labor practices and, according to the applicable legislation, if the illegal practice is confirmed, the fine can reach up to 20% of the company’s gross turnover.

The Administrative Council for Economic Defense (CADE) is a federal agency whose purpose is to monitor free competition.

Is this subject of interest to you? The team at Marcos Martins Advogados has extensive experience in setting up and providing legal advice to companies of all sizes, and is qualified to deal with all demands aimed at guaranteeing your company’s maximum performance.

Have any questions? Talk to our lawyers and get advice.

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