Reed Health’s victory in a two-year court battle against three former employees who broke restrictive covenants has been hailed as a landmark industry case.

The healthcare company secured a High Court judgment against Terry Jones, Richard Baxter-Smith and Debra Oatway after they admitted using information from Reed’s database when working for the London-based Dream Recruitment.

The three ex-Reed Health workers paid costs in an out-of-court settlement, believed to be a five-figure sum, for soliciting and dealing with the firm’s candidates after they each left the company in 2002.

Reed Health obtained an injunction in 2003 after suspecting Jones, Baxter-Smith and Oatway of illegal dealings.

Ken Steers, acting HR director for Reed Health, believes that the ruling confirms the enforceability of the restrictive covenants in all employers’ contracts. “This decision fully vindicates our wish to pursue this case through the High Court,” said Steers. “The judgement is the most significant penalty from our point of view and is positive for both us and the industry.”

Reed Health has maintained its stance to take any threat to its property and database of candidates as a serious matter.

Trevor Goul-Wheeker, chief executive of Reed Health, said: “This demonstrates the importance of restrictive covenants in our employees’ contracts and that Reed Health will pursue any individuals who breach those covenants.”

Dream Recruitment declined to comment to Recruiter.