• Clarification on Solicitation/Poaching of Employees

Hi Please note that we(Manpower Agency) have agreement with a client that includes below clauses. 

"During this Agreement and for a period of six months immediately following the Termination date not to, for the purpose of competing with the business of COMPANY, induce or procure or attempt to induce or procure any employee of COMPANY to leave the employment of COMPANY whether or not such employee would commit any breach of their employment by reason of leaving the employment of COMPANY.

Please clarify below points.
1.What is meaning of "For the purpose of competing with the business of company" 
2. Can we approach employees of company for recruiting them in different company in another business( Not client's competitor)
Asked 8 years ago in Labour

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5 Answers

1) for purpose of competing with the business of company would mean joining a rival organisation engaged in same line of business . you cannot induce any of your client employees to resign from their job and join a competitor

2) the best option is to release advertisements in newspapers or in social media for job opportunities .if any employee applies pursuant to an advertisement you would not be guilty of poaching employee

3) you can approach employee for recruiting them in another line of buisnes

Ajay Sethi
Advocate, Mumbai
99804 Answers
8147 Consultations

1) employees who have applied voluntarily pursuant to advertisements released in newspapers can be given job offers . it would not be breach of non solicitation agreement

2) if you recruit employees responding to bulk emails sent by you it would constitute poaching .

Ajay Sethi
Advocate, Mumbai
99804 Answers
8147 Consultations

Hi

In general staffing consultants are advised NOT to recruit candidates(So recruited through staffing consultants) from their client companies there by effectively restraining the staffing consultants from contacting any of existing employees.

In your case, the client has imposed a restrictive covenant on you which is in violation of Article19(G) of

constitution and by such restrictive covenant the client has effectively prevented you from approaching his employees.

Instead of inviting the client's anger and losing his business, you may resort to

a) Placing talent in companies engaged in business which do not compete with your existing client or

b) You are at liberty to place talent with industries which are competing with your client, if and only if any of the employee had approached you, on his own accord and will, either in response to your job posting in any employment portal, news paper advertisement etc.

3) Please note that No person can restrain you if any employee of a client company has responded to your job posting in a public domain(job portal, news paper ads etc).

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

Please clarify below points.

1.What is meaning of "For the purpose of competing with the business of company"

The person should not indulge into the same business as a competitor for that prescribed period

2. Can we approach employees of company for recruiting them in different company in another business( Not client's competitor)

If the condition do not restrict this, you may go ahead.

T Kalaiselvan
Advocate, Vellore
89998 Answers
2496 Consultations

Generally Non Solicitation clause include direct and indirect solicitation of employee. In that case can we source employees who have applied to a job vacancy in response to an advertisement?

Mobilizing candidates for employment through newspaper advertisements should not be a hurdle quoting the non solicitation clause.

Also we shoot Bulk emails from Job Portal and candidates applies to that job. Will it constitute poaching if we recruit those employees responding to bulk mails?

This cannot be considered as poaching, because it is a general call and a random call.

T Kalaiselvan
Advocate, Vellore
89998 Answers
2496 Consultations

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