Should No-Poaching Agreements Be Prohibited in Corporate Transactions? From the View of Taiwanese Competition Law

Should No-Poaching Agreements Be Prohibited in Corporate Transactions? From the View of Taiwanese Competition Law
 Title
Should No-Poaching Agreements Be Prohibited in Corporate Transactions? From the View of Taiwanese Competition Law
 Author

Shin-Ru Cheng

 Keywords
No-poaching Agreements;Restriction of Competition;Corporate Transaction;Unethical Recruitment;Labor Protection;禁止聘僱條款;限制競爭;併購交易;惡意聘僱;勞工保護
 Public Information
13 NCTU L. REV., September 2023, at 45-87. 
 Abstract
No-poaching agreements (NPAs) prohibit parties from recruiting each other’s employees. While the agreements can prevent unethical recruitment in corporate transactions, they reduce external job options for laborers, thereby significantly harming their bargaining power. Yet, employment law and labor law appear to face difficulties of addressing the problem. This article seeks to tackle the problem by examining the legality of NPAs under Taiwanese competition law. With reference to the major jurisdictions and Taiwan’s competition law and previous cases, this article clarifies the relevant market of NPAs and their anticompetitive harms and procompetitive benefits. It argues that NPAs should be prohibited under competi-tion law, even to protect parties’interests in corporate transactions, because orga-nizing an independent team to manage employee information is a less restrictive way to achieve the same goal.
Abstract Article
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