Ruling gives upper hand to poachers

A Court of Appeal ruling has effectively given a green light to the tapping up of top employees, such as print salesmen, making it harder for firms to claim compensation.

The "inducement to commit a breach of contract" allows a business to take legal action against another if it has encouraged someone to breach the terms of their contract.

However a new judgement, in the case of Mainstream Properties v Young and Others will make it much more difficult for businesses to pursue.

BPIF head of legal affairs Anne Copley said that firms would now have to prove beyond a doubt that the inducement was deliberate, and that there was actual intent.

"A claimant will now have to show there was actual intent to cause them economic harm as a result of the breach," said Copley.

The decision is being viewed as an example of the current trend toward providing less protection to businesses in the name of competition.

"Unless you can show there was a concerted effort to damage, then it will just be shown to be part of the normal business dealings. Unfortunately it's part of the jungle we live in today," she said.

XL Recruitment managing director Ian Swarbrick said he did not think the decision would influence those people who were looking to move.

"If a sales person moves to a different company it tends to be because they have their own interests at heart," he said.

One print recruitment consultant said he wasn't aware of a company ever winning a breach of contract case. He said: "People who are looking to move will often move because of the opportunities for development or to be with a market leader."

Story by Andy Scott