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.
Following what it described as "very constructive engagement" with the CCPC, Chartered Accountants Ireland said it has updated its guidance on the timing of employer permission for students seeking to transfer their training contracts.
The CAI said its previous policy had required students to obtain permission from their current training firm prior to attending interviews with alternative firms.
In a statement, it said the guidance had been "designed to uphold the integrity of the training contract system and maintain trust between all parties involved."
"We know from our engagement with our training partners, that permission is typically sought at the job offer stage, so we are pleased to amend our guidance to match this common approach."
The CAI said the "minor change" reflects its commitment to supporting student mobility, while safeguarding the interests of all parties.
"We are in the process of informing training firms and students," the statement added.
The CAI said the training contract is "an important relationship between employers and trainee chartered accountants, and in the vast majority of cases, this continues unbroken through to qualification."
"This year alone, Chartered Accountants Ireland has admitted over 1,200 newly qualified professionals into membership, and we are proud of the contribution they will make to economies and societies on this island and further afield."
