When a staffing company hires professional recruiters, they probably don’t anticipate that they’ll recruit the company’s own employees to a competing staffing company, but that’s allegedly what a former director for Randstad did.
Randstad, a leader in the world of industry staffing and recruiting, recently filed a lawsuit against four former employees who allegedly left their positions at Randstad, without notice, to allegedly set up a competing staffing company just down the street from Randstad. The lawsuit alleges that the former director took his entire team, including two executive recruiters and the company’s office administrator, with him to work at the new staffing company he had just set up.
According to the complaint, Randstad’s former director knew that the two executive recruiters he was taking with him had signed confidentiality and non-compete agreements that prevented them from working for a competing company in the same geographic area for at least one year after their employment with Randstad had been terminated. The agreements also allegedly prohibited them from taking either clients or employees away from Randstad.
The complaint does not yet allege that the former employees stole customers away from Randstad, but it alleges that the fact that they started another staffing firm not far from Randstad’s offices should be sufficient to prove they posed a risk to Randstad’s business. Continue reading