Recruitment Services

The last few years have witnessed some of the most turbulent times that the recruitment sector has ever seen. Not only has there been a rapid development and review of regulations and laws which have impacted all levels of the industry, but there has been an unprecedented volume of corporate activity in the sector, with mergers and acquisitions and restructuring activities taking place on a large scale. Added to this is the increasing strain on businesses caused by debt management and collection issues, increasing levels of regulation as well as with the endemic problems of consultants moving between agencies, often taking with them highly valuable information and breaching post-termination restrictive covenants.

As a result, Recruitment Agencies are facing many new challenges and opportunities, both in the role of employer and recruiter and need clear and commercial advice.

Why we are different

At Mishcon de Reya, we have a dedicated Recruitment Services Group, made up of recruitment specialists from our employment, litigation and corporate practices: we act for numerous high-profile recruitment clients on the most important matters which face them, and fully understand the dynamics of today's increasingly complex, competitive and global recruitment environment.

Unlike our competitors, we do not sit on the fence: we do not confuse our clients with legal jargon. Instead, we provide clear and concise business and legal advice in respect of all aspects of their business requirements. We are straightforward with our clients; we fight their corner and consistently deliver a return on their time and financial investment.

Services

Data theft

The theft of client and candidate data in the recruitment industry is amongst the fastest growing of economic crimes. We specialise in protecting our clients from data theft and use effective investigation and litigation techniques designed to deal with the theft of confidential business and client information.
The Group has a proven track record in acting for some of the UK's largest recruitment companies in cases involving the protection and theft of confidential client and candidate information.

Restrictive Covenant enforcement

The relationships between consultants, clients and candidates are central to the success of a Recruitment Agency. When consultants leave, they will usually wish to remain in the industry and rely on the relationships they have established whilst in employment. These relationships can be protected by the use and enforcement of restrictive covenants in contracts of employment. Restrictive covenants are notoriously difficult to draft and enforce. However, our Recruitment Services Group has extensive experience of doing this for members of the recruitment industry and has been consulted by the REC to draft its standard form covenants.

Corporate

There are many corporate issues affecting recruitment agencies. We provide tailored advice on all aspects, including tax structuring, flotations, finance restructuring, bank lending, mergers and acquisitions and strategic alliances.

Employment and benefits

Employees are often a company’s greatest assets, but they can also be its largest overhead. As such, it is critical for businesses to attract the right people, employ them on appropriate terms and handle their exits with a clear understanding of the commercial and legal implications of the actions. In the recruitment sector it is vital that employees have an employment contract protecting agencies from data theft, as well as protecting client and candidate relationships when employees leave.

Immigration

Today's business community is increasingly global. The need to enter, live and work in other countries is more important than ever. Our immigration specialists provide advice on global immigration issues and have a proven track record in obtaining the necessary permits and documentation without delay.

Outsourcing

One of the growth areas within the recruitment sector. We can advise on all phases of the outsourcing transaction lifecycle, including structuring, due diligence, negotiating, implementing and re-negotiating outsourcing contracts.

Trademark and IP

Recruitment agencies have valuable intangible assets and intellectual property rights, such as trademarks, that should be protected. Our specialists can assist with that process from inception and acquisition through to protection and enforcement.

Data Protection

Compliance with current data protection legislation is essential to protect agencies and clients. We can advise on how to achieve this, utilising our expertise in all aspects of data protection and the related fields of privacy and information law.

Within an increasingly internet based industry, it is essential that IT projects come in on time and within budget. It is vital to ensure that software and systems remain up to date and that ongoing support is received. We work with our clients to put the right contracts in place to start with, in order to help achieve these objectives and avoid problems later on.

Debt recovery

One of the major risks for Recruitment Agencies is disputes over unpaid introduction fees. The failure of a client to pay fees may occur for a number of reasons. We have extensive debt recovery experience and work to ensure that everything possible is done to recover sums due, as quickly and efficiently as possible.

Commercial

To trade effectively with your clients you need to have robust terms of business that smooth the business relationship, allow effective enforcement in the event of breach and which are compliant with the agency regulations. We have senior commercial lawyers with extensive experience of drafting such agreements for recruitment clients.

Experience

Advising TMP Worldwide Inc. (now known as Monster Worldwide Inc.) on all UK acquisitions (including the takeover of HW Group, the acquisition of QD Legal, the acquisition of Bartlett Scott Edgar and the acquisition of Austin Knight, to name a few.)
Advising a number of leading recruitment agencies on preparing their terms of employment for staff, including restrictive covenants and confidentiality clauses, including restrictive covenants and confidentiality clauses, and terms and conditions for clients and candidates. In particular, the Recruitment Services Group advised the REC as to the terms of the standard form restrictive covenants applicable to recruitment businesses.
Acting in relation to High Court litigation against various recruitment consultants who had misappropriated recruitment agencies' confidential databases and other trade secrets, obtaining search orders and freezing injunctions to prevent further breaches.
Advising in respect of legal remedies against all types of activities used by consultants to steal information, including acting in the case of Hays v Ions (use of information sent to Linked In social networking site).
Bringing High Court proceedings on behalf of a number of recruitment companies to enforce restrictive covenants and confidentiality clauses against departing employees.