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Legal implications??

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  • 16-11-2011 3:07pm
    #1
    roonimirza
    Registered Users Posts: 78 ✭✭


    A friend of mine, working for a multinational, applied for another multinational (core business of multinationals inst same), but was told the MDs of both companies have an agreement not to hire current employees from each other.

    Questions which my friend asked me?

    1- Is this legal?
    2- Could this be classified as price fixing thing!
    3- Can this be considered as wrong (cant think of better word) where his
    career will sacrifice and denied of further opportunities?

    Thanks


Comments

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    #2
    daheff
    Registered Users Posts: 5,866 ✭✭✭daheff


    1- Is this legal?
    No. companies have the right to choose who the employ. If they felt that employing a person from a company they have a relationship with would damage their business, then they are within their rights not to deal with any applications from employees of this company.

    2- Could this be classified as price fixing thing!
    I cant see how?

    3- Can this be considered as wrong (cant think of better word) where his
    career will sacrifice and denied of further opportunities?
    As outlined above, if hiring somebody would be detrimental to the business relationship then no it wouldnt be wrong.


    what if your friend resigned, would the company be interested in hiring your friend then?


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    #3
    roonimirza
    Registered Users Posts: 78 ✭✭roonimirza


    Thank you daheff, kind of a resignation, we thought the same, but not sure! Any how really appreciate your quick answer :)


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    #4
    msg11
    Closed Accounts Posts: 3,572 ✭✭✭msg11


    daheff wrote: »
    1- Is this legal?
    No. companies have the right to choose who the employ. If they felt that employing a person from a company they have a relationship with would damage their business, then they are within their rights not to deal with any applications from employees of this company.

    You mean Yes it is legal..

    Is one paying better than the other, I can't see how it would damage business, one person is unhappy in his current company and wants to move to a new company, just let him move.


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    #5
    daheff
    Registered Users Posts: 5,866 ✭✭✭daheff


    msg11 wrote: »
    You mean Yes it is legal..


    sorry you are right...i do mean its legal - i was more answering the question is there any legal impediments to doing this


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    #6
    daheff
    Registered Users Posts: 5,866 ✭✭✭daheff


    msg11 wrote: »
    Is one paying better than the other, I can't see how it would damage business, one person is unhappy in his current company and wants to move to a new company, just let him move.


    if a CEO moved between businesses it could damage the business -company CEO is leaving is now without leadership


    same can happen (obv to lesser degree) further down the chain

    person may bring insider info with them (on pricing etc)

    **just a couple of examples off the top of my head


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