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It is not a Non-Compete Clause, it's an Anti-Poaching Clause!
Essentially, the client has agreed to pay the temp agency a fee for you working for the client. In the event the client decides to hire you as their own employee, the anti-poaching clause (usually within a specific time period of 30-180 days after your last work day with the client), will require the client to pay the agencies usual and customary employment agency referral fee to release them from the anti-poaching provisions of the contract they have with each other.
This is not a non compete as the employer and the agency are not saying you can;t work work for each other. So although you are free to seek employment with the client, the client has to decide if your worth the extra lump sum payment. If they like you, they hire you as there is no on compete; they just fork over the employment fee to the temp agency. Does that clear it up?
Okay, how do I know that this "non-poaching clause" exists? How much it is? And, when it expires?
It is not a Non-Compete Clause, it's an Anti-Poaching Clause!
Essentially, the client has agreed to pay the temp agency a fee for you working for the client. In the event the client decides to hire you as their own employee, the anti-poaching clause (usually within a specific time period of 30-180 days after your last work day with the client), will require the client to pay the agencies usual and customary employment agency referral fee to release them from the anti-poaching provisions of the contract they have with each other.
This is not a non compete as the employer and the agency are not saying you can;t work work for each other. So although you are free to seek employment with the client, the client has to decide if your worth the extra lump sum payment. If they like you, they hire you as there is no on compete; they just fork over the employment fee to the temp agency. Does that clear it up?
I haven't even started working for the client. There is not even an offer yet. I don't see how the client could be held legally responsible if I approach them directly and offer to work for them directly without the agency involved. Can someone answer this question?
I am getting the feeling that this board is pro hiring manager and is filled with employers...
Okay, how do I know that this "non-poaching clause" exists? How much it is? And, when it expires?
You don't know and unless the temp agency or the client decided to disclose it to you, it's really none of your business. But for discussion purposes, seldom will a contract not include some such clause otherwise companies would use temp/staffing agencies as pseudo employment agencies and avoid the higher fees. The length really depends on what was negotiated and are normally from 3 - 6 months, some longer, some shorter. The cost can be 1/2 your annual salary or more. The aim of this is to make it financial unattractive for a client to do a direct hire of the temp employee.
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Originally Posted by dessertlover
I haven't even started working for the client. There is not even an offer yet. I don't see how the client could be held legally responsible if I approach them directly and offer to work for them directly without the agency involved.
It's based on a contractual agreement between the two entities. The agency and the client entered into a legal contract with terms and conditions. One of those terms is normally that the client will not directly hire anyone who was a temp/staffing placement until a certain period of time has elapsed. You can approach them but if you worked at that company through the temp or staffing agency, they may be required to still pay an employment fee to that agency if you are hired within the contractual time period of the anti poaching clause.
This has nothing to do with a person's position on employers or employees; pro or con. This is a very simple basic business practice. It's common, it's standard and it's been going on for a very long time. I'm more surprised you had no idea how this works.
You don't know and unless the temp agency or the client decided to disclose it to you, it's really none of your business.
Like hell it isn't my business! It most certainly IS! I'm not about to be taken advantage of by this staffing agency.
Quote:
But for discussion purposes, seldom will a contract not include some such clause otherwise companies would use temp/staffing agencies as pseudo employment agencies and avoid the higher fees. The length really depends on what was negotiated and are normally from 3 - 6 months, some longer, some shorter. The cost can be 1/2 your annual salary or more. The aim of this is to make it financial unattractive for a client to do a direct hire of the temp employee.
It's based on a contractual agreement between the two entities. The agency and the client entered into a legal contract with terms and conditions. One of those terms is normally that the client will not directly hire anyone who was a temp/staffing placement until a certain period of time has elapsed. You can approach them but if you worked at that company through the temp or staffing agency, they may be required to still pay an employment fee to that agency if you are hired within the contractual time period of the anti poaching clause.
How would this apply to my current situation as no offer has been extended by the client, or excepted by me?
These clauses can be bought out for fairly cheap. 9 out of 10 times, I see $50k. They are usually vslid for 12 month after separation.
You must be a Recruiter, Mr. Hospitality. How's that working for ya? Welcome to my thread. Your response has just solidified my next course of action, which of course, will entail looking after numero uno.
You must be a Recruiter, Mr. Hospitality. How's that working for ya? Welcome to my thread. Your response has just solidified my next course of action, which of course, will entail looking after numero uno.
No, I'm not a recruiter.
Based on your posts in this thread, you don't have the qualifications to be a recruiter. You might want to search for a new industry.
How would this apply to my current situation as no offer has been extended by the client, or excepted by me?
I'm not sure why this is so confusing, but maybe if I give you a real word scenario it will help you understand this simple concept.
From time to time, I have the need for an individual to perform certain task that are mundane, tedious, repatriate and just plain old not what i pay my employees to do. So, I use the services of a temp/staffing agency. As part of the relationship between the agency and my company, we both agree to certain terms and conditions of our relationship. It includes monetary payments, work rules, time frame, etc. Basically, it's just a standard business contract covering what we agree upon. This contract is between me and the agency and is of no concern to the employee.
One part of that contract is the non-poaching clause. It essentially states that during the term of the contract and during a X day period after the contract is fulfilled, if I hire that person directly, I pay the agency their customary employment referral fee. This ensures that I don't use the agency to recruit a permanent employee but only pay for a week of work and not their fee for recruiting a permanent employee.
So, based on the above, the temp/staffing person is free to apply to be a regular employee of my company and/or I am free to offer them a permanent regular employee position. Nothing in the contract stops them from working for me as my employee. However, if that person is/was a temp/staffer from an agency, and I hire them, And they are still under the agency contract or within a specified period after no longer assigned to me as a temp/staffer, I am contractually obligated to pay a fee to that agency. That's it, that's all.
Once again, I'm not sure why this is such a big deal as it is just the way these things have always been and will always be. What I owe the agency if I hire a person within the non poaching period is my business and is of no concern of the staffer/temp worker. Honestly I don't know how old you are or how long you've been in the workforce but trying to turn this into some horrible act against employees or workers is kind of silly.
Based on your posts in this thread, you don't have the qualifications to be a recruiter. You might want to search for a new industry.
I'm not a recruiter either, and don't want to be one.
Last edited by dessertlover; 12-13-2016 at 01:13 AM..
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