Hays in court to challenge £30m OFT fine
Hays has launched the next stage in its challenge to a £30.4m fine imposed by the Office of Fair Trading for competition law breaches, according to sources close to the company.
Hays has launched the next stage in its challenge to a £30.4m fine imposed by the Office of Fair Trading for competition law breaches, according to sources close to the company.
The source told Recruiter that the court case, which began on Monday and is being held at the Competition Appeal Tribunal in London, was a continuation of Hays’ appeal against its fine, awarded for the company’s illegal involvement in a construction sector price-fixing cartel in 2005. Hays is arguing that the fine is excessive and disproportionate.
In December 2009, chief executive Alistair Cox told Recruiter that the fine reflected more than double the profit earned by Hays’ construction and property division in the year the division was involved in the cartel.
“We have been penalised on group-wide turnover,” said Cox (pictured left). “We are not guilty of financially disadvantaging anybody in the marketplace and I think that is a point that really needs to be reiterated.”
Two of the other companies fined by the OFT are also having their appeals heard at the Competition Appeal Tribunal. They are Eden Brown and CDI AndersElite, which were fined £1.07m and £7.6m respectively.
Five other recruitment firms also participated in the cartel during 2004-05. Six companies were fined and one received immunity for whistle-blowing.
