Recruitment agencies urged to remain vigilant
The warning comes after a subsidiary company of PNG successfully obtained a high court injunction preventing a former director from carrying out any activities that would prejudice the operations of the business.
Firecracker Talent, a subsidiary of PNG, filed a claim against its former director, Jane Rolls and, following a lengthy legal process, the high court awarded default judgement in favour of Firecracker Talent Limited.
A dispute between PNG and Rolls developed after PNG discovered that Rolls had breached the agreed terms and conditions of the company’s restrictive covenants. A restrictive covenant is typically a clause in a contract that prohibits former employees from soliciting or dealing with customers of the business following termination of the role by using knowledge of those customers gained during prior employment.
Whether or not the high court will take action in a particular case of this kind depends on whether restrictive covenants or terms contained in employment contracts are enforceable.
Lifetime president of PNG, Tim Watts, said, “Recruitment agencies invest significant time and finance to ensure each and every one of their clients receives a first class service that they can trust. We are, therefore, naturally protective of all these relationships. PNG employees are dedicated to upholding the highest standards within recruitment, indeed, this issue was brought to our attention by a whistle blower within her own team.
“By bringing this case to wider attention we hope we can prevent other recruiters from falling victim to activities that threaten the professionalism of our industry.
“The majority of recruitment companies will feel they are protected by contractual agreements between themselves and the client. In most cases, they are. However, there is always a chance that business can be diverted and go unnoticed, highlighting the importance for recruiters to remain as close to each and every client as possible.”