A rule requiring trainee accountants to get written permission from their employer before interviewing for another job has been eased, amid concerns it could restrict competition.
Prospective employers were also required to verify the permission, as part of the Chartered Accountants Ireland (CAI) previous policy.
Following a complaint in June, the Competition and Consumer Protection Commission (CCPC) raised concerns with the CAI that the requirement "could restrict competition for accounting trainees and risked breaching competition law".
The CCPC said the CAI agreed to amend its policy on transferring active training contracts between accounting firms, following what was described as "a constructive engagement".
Under the revised rules, employer approval is now only required after a trainee accepts a new role and is ready to transfer, not before interviewing or exploring opportunities.
The CAI has also put a complaints procedure in place for any issues relating to transfers.
The competition watchdog said it considers that the revised policy "will give trainees more freedom and flexibility should they wish to transfer their training contract to another firm".
"This change removes a significant barrier to competition while maintaining proportionate requirements such as ensuring trainees complete any outstanding training requirements before transferring and resolving obligations like repayment of fees covered by their original firm," it added.
The CCPC said due to the CAI's timely and constructive engagement, it "considers this matter closed".
However, it is warning professional bodies and trade associations to "review their policies to ensure they do not restrict competition".
It said any rules or agreements requiring advance permission to interview or discouraging hiring among members "will attract scrutiny and may lead to enforcement action".
The Director of Antitrust at the CCPC welcomed the CAI's "constructive and timely engagement to address our competition concerns".
Craig Whelan said that labour market restrictions are "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 added.
He said competitive markets drive better outcomes and "the job market is no exception".
"When firms compete to hire and retain talent, workers benefit through higher pay, better conditions and greater career opportunities. Restrictive policies and agreements between firms deny employees these benefits," he said.
Mr Whelan said the issue is now firmly on the CCPC's radar, adding that the watchdog is "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.
