Trainee accountants can now seek new jobs without their employers’ approval. Photo: Getty
Trainee accountants will no longer need permission from their employer before applying for an alternative job or going for interviewing, after a complaint that the rules were punitive and anti-competitive.
The move has implications for other professional bodies if similar restrictions are in place, regulators warned.
Under revised new rules, employer approval to transfer a Chartered Accountants Ireland (CAI) trainee contract is now only required after a trainee accepts a new role and is ready to transfer.
CAI is the largest provider of accountancy qualifications on the island of Ireland, so its rules have significant impact on trainees in both the Republic and Northern Ireland.
Today’s News in 90 Seconds – Wednesday, November 26
Under the previous policy, any trainee accountant was required to obtain written permission from their current employer before interviewing with another firm. Prospective employers were also required to verify this permission. In practice that has made it impossible for some trainees to move job during their three-and-a-half year traineeship.
The Competition and Consumer Protection Commission (CCPC) said it received a complaint about the restrictive conditions in June this year and raised concerns with CAI that this policy could restrict competition and risked breaching competition law.
CAI agreed to amend the policy, although it was of the view that the rule did not have a significant operational impact.
Under the revised rules, employer approval is now only required after a trainee accepts a new role and is ready to transfer.
The CCPC said the revised policy will give trainees more freedom and flexibility while at the same time maintaining “proportionate requirements” such as ensuring trainees complete any outstanding training requirements before transferring and resolving obligations like repayment of fees.
Anti-competitive restrictions don’t just harm employees – they can harm the wider economy
Craig Whelan, director of Antitrust at the CCPC said the agency now considers the matter closed, as far as trainee accountants are concerned, but thinks there may be implications for other professional bodies and trade associations – saying any rules or agreements requiring advance permission to interview or discouraging hiring among members will attract scrutiny and may lead to enforcement action.
“Labour market restrictions are increasingly coming to the attention of competition authorities worldwide”, he said.
“Anti-competitive restrictions don’t just harm employees – they can harm the wider economy”.
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