Job listings platform Seek has warned customers about Employment Hero’s alleged data practices in a new email, after the Federal Court ordered it to maintain the startup’s access to its job posting API during an ongoing legal dispute.
The message followed a temporary agreement struck between the two parties to preserve platform access while Federal Court proceedings are underway.
As first reported by Capital Brief, Seek emailed customers on Thursday. It stated it had “expressed concerns to Employment Hero about its practices on multiple occasions in the past” and that it would be “monitoring Employment Hero’s adherence to our terms closely”.
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“Employment Hero must comply with our Seek API Terms of Use – the same ones that apply to all partner platforms that integrate or have access to Seek and your ads and applications,” the email, seen by SmartCompany, said.
“These terms include obligations around use of data and compliance with applicable laws – areas where we have expressed concerns to Employment Hero about its practices on multiple occasions in the past.”
Seek framed the legal action as an opportunity for “substantive evidence” to be tested rather than “ambit claims,” and told customers it would “vigorously defend the legal action”.
It also stated it “strongly” rejects Employment Hero’s allegations that Seek has misused its market power by cutting off access to a critical integration.
“We believe that the vibrancy of competition generates innovation that is very beneficial for you and all customers,” the email reads.
Seek declined to comment further on the email or the current legal situation with Employment Hero.
“We consider that the termination was a breach of the competition laws,” an Employment Hero spokesperson told SmartCompany on Monday.
The startup was founded in 2014 and provides HR, payroll, and recruitment software to SMEs.
Seek itself invested in the startup in 2018 through its venture arm, Seek Growth Fund.
Despite selling a $95 million stake to global investment firm KKR earlier this year, Seek has said it still retains a “meaningful stake” in the company.
Federal Court orders Seek to maintain Employment Hero API access
The dispute centres around Seek’s plan to cut Employment Hero off from its job listings API. This is an integration that allows employers to post ads and manage applicants directly from Employment Hero’s platform.
The startup filed proceedings in the Federal Court last week, claiming Seek’s move would significantly disrupt services for thousands of small business users.
As first reported by The Australian Financial Review, Justice Elizabeth Cheeseman issued interim orders on Wednesday preventing Seek from removing or interfering with Employment Hero’s access until the matter goes to trial.
She ruled Seek must not “terminate, deliberately disrupt or degrade” Employment Hero’s API access, “including by refusing or delaying to provide Employment Hero with functionality, information or support”.
The only exception would be if Employment Hero breached the existing API terms — an allegation the startup denies.
“We’re pleased with this preliminary outcome to preserve access for our customers. Whilst the matter remains the subject of Court proceedings, it removes the immediate uncertainty by ensuring that the integration will continue to function as normal throughout this process,” an Employment Hero spokesperson told SmartCompany.
Our foremost priority continues to be continuity and confidence for every employer and as such, we will continue to fight to maintain the most efficient recruitment processes for our customers.
A final hearing date has not yet been set. In the meantime, Seek has made clear the company is “vigorous” in its intention to defend the case and will “continue to update [customers] whenever there is a development that may affect the services [they] use via Employment Hero”.
