Skills crisis prompts IT workers to break the law

Newly-recruited IT staff are increasingly jumping ship before starting a job, according to a report by recruitment company Ambition.

A lot of potential employees are ignoring contracts they have signed in order to take up better offers from other companies during their 'onboarding period', or the time -- typically four to six weeks -- between agreeing to terms with an employer and starting work with them, said Andrew Cross, Ambition's MD. It has been a new development over the second half of this year, he said.

"The first time you hear it, you shake your head and say 'I can't believe people do it'," he said, but the increasing number of reports of such behaviour have shown it to be a new trend.

The candidates don't realise the danger they are in, said Cross: "They are oblivious of the fact that they could be taken to court for breach of contract." Cross warns that it would only take one court case to start a wave of legal action, with companies seeking restitution for damages after being deserted by their new hires.

According to Cross, if such contract breaking is ruled against once, it will discourage 80 percent of possible offenders who would otherwise consider reneging on the agreement.

At the moment, companies are turning a blind eye, Cross said: he believes firms should take action against the contract breakers. If an employee was already bound by a contract before signing with a new company, the new company should revoke their contract.

"It says a lot about a person's integrity" if they walk out after signing a contract, Cross added.

Cross advised that a less aggressive way to fight the illegal behaviour is for the companies to adopt different strategies during the 'onboarding period'. The potential employees need to be engaged in their new work environment, he said, for example by their new colleagues inviting them to work drinks. The "see you in four weeks" attitude needs to change, Cross said.

The recruitment companies also have to inform candidates of their contractual obligations, he added.

The amount of coverage the IT skills crisis has received in the press is partly responsible for the boldness of potential employees, according to Cross, with not only experienced workers but also newcomers to the industry offending the law.

In some ways it is "a positive sign" that the IT industry is buoyant, Cross admitted, but said he doesn't think "anyone other than the candidate is going to be happy about it".

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Talkback 8 comments

  1. Shameless hypocrisy Anonymous -- 26/11/07

    It also says a lot about a recruiter's integrity by the type of contract they offer.

    For example having one sided terminations providing the recruiter/client a means to terminate the contract without notice and for any reason, and no way for the contractor to terminate (except if the recruiter and client agrees to it.. hmm I wonder how often that happens).

    That would appear to the case here where the contractor has no legal means to terminate the contract. How dare they leave to take up a better offer (can't have the contractor looking after their own business can we).

    Also, does it not seem strange that it's the recruiters complaining loudest about this situation, and not the clients???

    1. Perhaps the law should change? Anonymous -- 27/11/07

      The laws should change so it isn't illegal for an employee to challange such restraints on trade.

      Particularly in the case of lobbsided contracts.

      Perhaps, we should put in a fairness test on Independant Contracts.

      I'm sure the Recruitment Industry would be up in arms over such legislation, but it's a new government, and the the Recruitment industry have long had their time in the Sun.

  2. Please go ahead, Ambition Tony Healy -- 27/11/07

    I invite Ambition to try such an action. As it knows, it would lose, and in the process expose to everyone that IT contracts are just casual work arrangements.

    This story should have carried comment by industrial relations experts.

    Is this some sort of PR response by the industry now that Labor's in power?

  3. What kind of PR would this generate. Mark -- 27/11/07

    What kind of PR would it generate if a company, most of which expect 4 weeks written notice but can terminate on the spot, took an employee to court because they found a better offer? Of course they would look like total hypocrites.

  4. Does business really want a deserter? Anonymous -- 27/11/07

    Do you really want to enforce a 4-week notice period and bring a new employee on board knowing they are already considering or committed to leaving? How would this benefit the employer? When bringing in a new employee you are looking for enthusiasm and commitment. "Jumping Ship" is a sure sign this was a wrong choice, and its much better to find this out BEFORE they start in a job and really consume time and effort.

  5. What a load of rubbish Anonymous -- 27/11/07

    I started a contract position with one of the worlds biggest IT consulting companies after 3 weeks they made me redundant and tried to get out of paying me the 2 weeks notice period, yes I had to threaten them with legal action. I never would have walked out on a company without giving proper notice, but I have since changed my thinking on that!

  6. "Offending the law"... The hypocrisy Anonymous -- 28/11/07

    The hypocrisy is astounding. If the agents see this is as such a big problem, why don't they take the "offenders" to court.

    They know they would lose, and their contracts would be found out to be unenforceable if not outright illegal.

    How many contracts with lop sided termination clauses are out there? What's anyone doing about those ones?

    You reap what you sow.

    Employers have had it good (even in the midst of the so called "skills shortage") for so long and the power is starting to swing back the other way a little, and they don't like it.

  7. too much crapola Anonymous -- 28/11/07

    I was given a two week contract extension and at the same time forced to sign an AWA. In the meantime my job was being offered to a mates pal (after he wanted his old contracting job back) so the company started a rumour that I wanted to leave.

    There you go.

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