Insurance giants Aon and Howden head to court over poaching ‘raids’

When PE-backed intermediary Howden apologised for “unlawful recruitment” late last year, the company must have hoped that it could stop focusing on legal issues, and get back to the important business of growing its insurance empire. However, within weeks, David Howden’s eponymous insurance company was served with another writ – again for what might be termed aggressive hiring policies.

This time, it was global broker Aon with a lawsuit naming 11 defendants, including the company, its reinsurance branch, vice-chair Elliot Richardson, and CFO Ahmed Farooq. The legal action wasn’t just aimed at the hirer, but also aimed at Aon’s ex-employees including Luke Foord-Kelcey (previously head of cyber at Aon’s reinsurance solutions) and Antonio Jorge Rodrigues (who was Aon Re Brazil CEO).

Aon has armed itself with law firm Lewis Silkin, which boasts one of the country’s largest employment teams of 170 lawyers headed by Richard Miskella. Howden is facing them off with Mishcon de Reya.

The first volleys of this latest legal headache for Howden will be heard later today as the pair head to court to argue jurisdictional issues in what has been pencilled in as a two-day hearing. It is highly likely that Mishcon de Reya will be attempting to exclude the Brazilian claims from the UK’s courts – Brazilian law frowns on restrictive covenants so if the case were to be heard in that country, Howden’s arguments (for those employees) would benefit from a legal tail wind.

In Brazil, there are no legal restrictions preventing employees from joining a competitor after their employment ends, and such non-compete clauses are not legally recognised. It is considered a fundamental right for individuals to work freely without such constraints. While these clauses are common in other countries, they are often viewed unfavourably in Brazil.

It remains to be seen whether the company will agree to settle again, or whether, this time, it feels it is better to dig in and see the battle out.

Who’s suing, who’s getting sued

The claimants in KB-2023-004487 Aon UK Ltd and others v Howden Group Holdings Ltd and others front of Master Dagnall today in Court 21 are:

The defendants being represented in Court 21 will be:

Can competitors steal your staff?

The term “poaching” refers to when an employer actively approaches someone who is already working with an organisation. This is opposed to the usual recruitment process and advertising a vacancy.

According to Worknest.com, there is no law that directly prevents one organisation from taking staff from another. However, legal issues can arise, if, for example, a contract has been signed by a hiring manager with a non-poaching clause – that would make enticing ex-colleagues to take up a new role within that time period, a breach of contract.