Can Employers Hire Someone Who Is Still Under Contract?

Hiring the right candidate can be challenging, especially when a promising applicant is still employed by another company. While their skills and experience may align perfectly with your requirements, their existing employment contract can raise questions about availability, notice periods, and potential legal obligations. So, can employers hire someone who is still under contract?

The short answer is yes, in many cases. However, employers need to understand the candidate’s current contractual obligations, the applicable employment regulations, and the potential risks before proceeding with an offer. A well-managed recruitment process can help companies secure strong talent without creating unnecessary legal or operational complications.

1. Can Employers Recruit Candidates Who Are Still Under Contract?

Yes. Employers can generally approach, interview, and offer employment to candidates who are currently working for another company. Being employed does not automatically prevent someone from exploring new career opportunities.

In fact, many experienced professionals prefer to look for new roles while maintaining their current employment. These candidates may have specialized skills, established industry knowledge, and valuable experience that make them attractive to potential employers.

However, there is an important distinction between recruiting someone who is still employed and having them start a new position before their existing employment obligations have ended.

Employers should consider several factors, including:

• Employment contract terms: Does the candidate have a fixed-term employment agreement, a permanent employment contract, or other contractual commitments?
• Notice period: How much time must the candidate give their current employer before leaving?
• Contractual restrictions: Are there any enforceable confidentiality, non-solicitation, or other post-employment obligations that could affect the transition?
• Availability: Can the candidate join within the hiring company’s expected timeline?

Understanding these factors early can help employers determine whether a candidate is a realistic option for the position.

2. What Happens If a Candidate Has Not Completed Their Contract?

A candidate’s ability to leave their current employer depends on the type of employment agreement, its terms, and the applicable employment laws.

For example, a professional working under a permanent employment agreement may be able to resign by following the applicable notice requirements and other relevant procedures. Meanwhile, an employee under a fixed-term employment agreement may face additional considerations if they want to leave before the contract expires.

In Indonesia, employers should pay particular attention to the distinction between fixed-term employment agreements, commonly known as Perjanjian Kerja Waktu Tertentu (PKWT), and indefinite-term employment agreements, known as Perjanjian Kerja Waktu Tidak Tertentu (PKWTT).

Under Indonesian employment regulations, ending a fixed-term contract before its agreed expiration date may trigger compensation or other financial consequences, depending on the circumstances and applicable legal provisions. Article 62 of Law No. 13 of 2003 on Manpower, as amended, also addresses compensation obligations when a party terminates a fixed-term employment agreement before its expiration without a qualifying legal basis.

Employers should therefore avoid assuming that a candidate can simply resign and immediately join another company without consequences.

Before making a final hiring decision, it is advisable to review the candidate’s contractual situation and seek legal advice when necessary.

3. What Should Employers Check Before Making an Offer?

Recruiting someone who is still employed requires a balance between moving quickly and conducting appropriate due diligence. Employers can reduce potential risks by addressing the following areas during the hiring process.

Review the Candidate’s Notice Period

Ask the candidate about their notice period and earliest possible joining date. Some professionals may need to provide several weeks or months of notice, while others may have different contractual arrangements.

This information helps hiring managers establish realistic onboarding timelines and avoid unnecessary pressure on the candidate to leave prematurely.

Understand Existing Contractual Obligations

Employers should encourage candidates to review their current employment agreements, particularly provisions concerning early termination, confidentiality, intellectual property, and other relevant restrictions.

Candidates should not be asked to disclose confidential documents, proprietary information, or trade secrets belonging to their current employers. The objective is to understand their obligations, not to gain access to another company’s sensitive information.

Check for Potential Conflicts of Interest

Hiring candidates from competitors is not automatically prohibited. Nevertheless, employers should assess whether the candidate’s current responsibilities or contractual obligations could create a genuine conflict of interest.

For example, a candidate moving from one financial services company to another may have access to sensitive client information. The new employer should establish appropriate safeguards to protect confidential information and ensure a compliant transition.

Agree on a Realistic Start Date

Once the candidate’s obligations are understood, both parties should agree on a joining date that accommodates the recruitment timeline and the candidate’s contractual commitments.

If the role is urgent, employers can discuss whether an earlier start is legally and contractually possible. They should not encourage candidates to breach their existing agreements simply to fill a vacancy faster.

4. What Are the Risks of Hiring Someone Before Their Contract Ends?

Hiring a candidate who is still under contract is not inherently problematic. The risks generally arise when employers overlook existing obligations or encourage an improper employment transition.

Potential concerns include:

• Contractual disputes: The candidate may face a dispute with their current employer if they leave without following the applicable termination procedures.
• Financial consequences: Early termination of a fixed-term agreement may result in compensation obligations under the applicable regulations.
• Confidentiality breaches: The candidate may unintentionally or deliberately disclose confidential information from their previous workplace.
• Operational disruption: An unrealistic joining date may create onboarding delays or force the employer to reconsider workforce planning.
• Reputational concerns: A recruitment process that disregards professional obligations may damage relationships between employers and undermine trust in the hiring process.

To manage these risks, employers should maintain clear communication, document agreed start dates, and ensure that recruitment decisions comply with relevant employment laws.

5. How Can a Headhunter Help Employers Navigate This Situation?

Recruiting professionals who are still employed can be particularly valuable when companies need experienced candidates for specialized or senior positions. However, managing their transition requires careful coordination between the candidate and the prospective employer.

A professional recruitment partner can help employers clarify candidate availability, manage expectations, and coordinate the hiring process more effectively.

RecruitFirst Indonesia supports employers in identifying suitable talent and navigating recruitment challenges. By helping align hiring requirements with candidate expectations, a recruitment partner can make it easier for businesses to evaluate qualified professionals while planning a realistic and responsible transition.

This approach is especially useful when hiring for positions that require specialized expertise, where suitable candidates may already be employed and unavailable to join immediately.

Rather than excluding candidates simply because they have existing employment commitments, employers can assess their qualifications, availability, and contractual considerations before deciding whether to proceed.

6. Best Practices for Employers Hiring Candidates Under Contract

To build a recruitment process that is both efficient and responsible, employers should consider these best practices:

1. Discuss availability early. Confirm the candidate’s notice period and expected joining date during the initial recruitment stages.
2. Avoid pressuring candidates to resign prematurely. Give them sufficient time to understand and fulfil their contractual obligations.
3. Evaluate contractual risks individually. Different employment arrangements may involve different legal requirements and consequences.
4. Protect confidential information. Establish clear expectations regarding trade secrets, client information, and proprietary materials.
5. Seek legal guidance when needed. Consult qualified employment counsel if a contract contains complex termination provisions or potential restrictions.
6. Plan recruitment timelines realistically. Account for notice periods and onboarding requirements when deciding when a new employee should begin.

These measures allow employers to pursue strong candidates while maintaining professional standards and reducing avoidable risks.

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Conclusion

Employers can generally recruit and make offers to candidates who are still employed by another company. However, whether and when those candidates can start working depends on their existing contractual obligations, the circumstances of their departure, and the applicable employment laws.

For employers, the key is to evaluate each situation carefully rather than automatically rejecting candidates who are still under contract. By understanding notice periods, reviewing relevant contractual terms, and planning realistic start dates, companies can attract experienced talent while minimizing potential complications.

Looking for qualified candidates who can meet your business needs? RecruitFirst Indonesia can help you navigate the recruitment process and connect with professionals suited to your organization.

Contact us to discuss your recruitment needs and explore how we can help your business find the right talent.