Recruiting staff for a UK distribution operation – potential pitfalls

A producer who wants to set up his own UK distribution operation will need people to run it for him. Suitable candidates will probably be working for other distribution companies, and may need to be head-hunted.

Recent court decisions show an increasing willingness on the part of judges to protect employers from breach of duty by their employees, especially in the case of orchestrated team-poaching exercises.

In Tullett Prebon v BGC Brokers (April 2010, High Court) it was held that an express clause in the employment contract requiring the employee to report any offer of employment made by a third party was enforceable. But even if there had not been an express clause, the implied duty of fidelity required an employee in a position of seniority or responsibility to inform his employer that a rival company was seeking to recruit him and/or other team members, and to follow any instructions then given by the employer to prevent that happening. It was also held that the relevant employees and the proposed new employer had been guilty of the tort of conspiracy.

Both employees and prospective employers therefore need to take very great care in this area.