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Non hire agreements

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  • 04-09-2013 9:38am
    #1
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭


    Does anyone here know if non hire agreements between companies are legal. I recently saw a position advertised which I thought was perfect for me so I applied for it. It was in a company that 5 people had left my company to work for.
    I got suspicious when I heard nothing back but a discreet enquiry revealed that my company had come to an agreement with this other company that they would not hire staff from each other. I understand where my company is coming from but if pay/conditions were better, no one old want to leave. In my opinion, by entering this agreement they are artificially keeping wages low.
    Can someone tell me whether this is legal or not.


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    #2
    Mrs OBumble
    Registered Users Posts: 25,967 ✭✭✭✭Mrs OBumble


    Please note: we cannot give you legal advice .. and this question sounds like it's a legal minefield.

    But we can discuss.


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    #3
    Nody
    Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,316 CMod ✭✭✭✭Nody


    Informal agreements like that are quite common, usually not documented and until they have a significant part of the market it's simply a fact of life. They also tend to be broken if the candidate/position is hot/urgent to be filled.


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    #4
    murphym7
    Registered Users Posts: 2,035 ✭✭✭murphym7


    The company I work for has a non hire agreement with one other company in the same industry also. Seems pretty common in some industries. I personally don't agree with them, but I see their purpose.


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    #5
    Bandana boy
    Registered Users Posts: 4,330 ✭✭✭Bandana boy


    I have seen them around acquisitions and I personally was impacted when one was enforced.
    My company sold a division to a competitor ,I transferred as part of the sale and 12 months later saw a role that I liked in another division of my old company.
    I secured the job in interview but the offer was based on acceptance from my current employer on breaking the 3 year non hire clause ,when they refused the offer was rescinded.

    I went through a conversation of what would happen if I resigned first, and then applied for the job. My understanding was that non hire agreements are not enforceable in the EU but are in the US, and that penalties could be adjudged against the company in that country.

    All in all unless your company is willing to break the agreement there is very little you can do , but if they are then I suspect your current company would be hard pressed to take any action inside the EU.


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