CAI changes training policy after CCPC talks
Ireland’s professional accountancy body is to change its policy on the transfer of training contracts between firms after talks with the competition regulator.
The Competition and Consumer Protection Commission (CCPC) said that Chartered Accountants Ireland (CAI) had agreed to the change after “constructive engagement” that followed a complaint raised earlier this year.
The previous CAI policy required trainee accountants to obtain written permission from their current employer before interviewing with another firm. Prospective employers were also required to verify this permission.
The CCPC had raised concerns that this policy could restrict competition for accounting trainees and risked breaching competition law.
Flexibility
The watchdog said that, although CAI believed that the rule did not have a significant operational impact, it had agreed to amend the policy.
The competition regulator says that the revised policy will give trainees more freedom and flexibility if they wish to transfer their training contract to another firm.
Under the revised rules, employer approval is now required only after a trainee accepts a new role and is ready to transfer, not before interviewing or exploring opportunities.
CAI also has a complaints procedure in place for any issues relating to transfers.
The accountancy body has updated the policy on its website, notified chartered accountant training firms, and communicated the changes directly to trainee accountants.
Advance permission
The CCPC says that the change “removes a significant barrier to competition”, while maintaining proportionate requirements, such as ensuring that trainees complete any outstanding training requirements before transferring and resolving obligations such as repayment of fees covered by their original firm.
The competition body says that the matter is now closed, but it has warned other professional bodies and trade associations to review their policies to ensure they do not restrict competition.
It states that any rules or agreements requiring advance permission to interview or discouraging hiring among members will attract scrutiny from the CCPC.
‘Stifling innovation’
Craig Whelan (director of antitrust, CCPC) said that labour-market restrictions were increasingly coming to the attention of competition authorities worldwide.
“Anti-competitive restrictions don’t just harm employees – they can harm the wider economy by holding back productivity growth and stifling the innovation that comes when new people bring fresh ideas into organisations,” he stated.
“This issue is now firmly on our radar. We are warning firms and professional associations to review their practices. Where we find anti-competitive conduct, we will not hesitate to take enforcement action,” he added.