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Following survey results
indicating an increase in the number of employees being poached by rivals, an
indication that confidence is returning to the jobs market in the capital’s
financial services industry.
Fiona Bolton, partner in The Human Resources
Practice Group at international law firm Eversheds comments: We are seeing an
increase in teams and individuals being ‘poached’ by competitors,
particularly in the financial services sector.
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“We are seeing an
increase in teams and individuals being ‘poached’ by competitors,
particularly in the financial services sector. Top talent is mobile, even in
the current economic climate, particularly if rewards for personal
performance are reduced or withdrawn. It may also be tempting for competitors
to try to get ahead by poaching teams and acquiring a business in that way
rather than going to the expense of buying the business.
“However, although it is
not unlawful in itself to poach a competitor’s employee, businesses looking
to hire should always consider any express or implied obligations to which a
departing employee may be subject, particularly any which continue after the
termination of his or her employment. Breach of these, and indeed inducing
any breach of these by requiring or encouraging the employee to engage in
activities which are contrary to these obligations, may well be unlawful.
There are additional risks
in a team poach situation if a conspiracy is orchestrated, or if employees
are encouraged to solicit other staff in breach of any express or implied
obligations or duties, or to disclose confidential information of the
previous employer. Any business which seeks to poach an individual or a team
could find themselves, or the individual or team in question, on the wrong
end of an injunction or damages claim if they do not consider these issues,
tread carefully and operate within the confines of the law.”
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