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Company sold and banned placed on rehiring

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  • 23-07-2016 1:09pm
    #1
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭


    I work for one of fund companies in the IFSC. Our department of 200 or so staff was sold to another fund company. We moved locations, were given P45s from our old company and we signed new contracts. Our terms and conditions remained the same under TUPE. My length of service is ongoing under TUPE also.

    Now in the new company there is a hiring freeze, it's very small so limited opportunities to train and progress.

    I applied for another job in my old company and was offered an interview. I fully understand I'll have to resign and my length of service will be back to zero.

    HR suddenly cancelled the interview and said a contract was signed between the companies there would be no rehiring for 18 months. I never remember being told this during our sale.

    The internal recruiter wants me to do the interview, the hiring manager who I know wants me to do it, I want to do it and now I'm barred.

    Is this legal? I'm not a senior manager or even a supervisor, I am an administrator. I never wanted to leave my old comment but I went along with the transfer, can I be blocked from returning for 18 months?


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    #2
    Mrs OBumble
    Registered Users Posts: 25,970 ✭✭✭✭Mrs OBumble


    Totally legal AFAIK. They can choose not to hire for any reason, apart from the 9 anti-discrimination ones.

    It's fairly standard for companies to put a "no poaching" agreement in place for this sort of situation.

    At least they've been honest and told you: in some cases, it would never by openly stated, you just would never have got a job offer, and no explanation why.


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    #3
    Irish_Elect_Eng
    Registered Users Posts: 1,260 ✭✭✭Irish_Elect_Eng


    There is a lot of information out there on this question from a US perspective, but little that I can find from Ireland.

    The Department of Justice’s Competitive Impact Statement (“DOJ CIS”) acknowledges that distinction: “An agreement that would normally be condemned as a per-se unlawful restraint on competition may nonetheless be lawful if it is ancillary to a legitimate pro-competitive venture and reasonably necessary to achieve the pro-competitive benefits of the collaboration.”

    Broadly:

    Illegal, if the purpose is a non-competitive agreement between competitors in the market place which results in a restraint on competition.

    Legal: If put in place to support an ongoing business relationship. For example an no-hire agreement between a company and a service provider to prevent the hiring company from poaching the service providers best staff.

    Legal: If put in place to support mergers or acquisitions, investments, or divestitures, including due diligence. When one company sells a business to another, a significant asset is the workforce, a no-hire agreement protected the purchaser from having the asset they bought stripped by the seller.

    The key element of whether an agreement is legal or not would be the relationship between the two companies in question.

    Just my 2c. Not a legal opinion.


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