Consultant wins case over failure to pay commission

The firm must pay the money to Marcus de Luca, a project finance specialist who now works for the rival headhunter Harvey Glynne.

Longbridge suspended de Luca in June 2000, on suspicion that he was planning to set up a competing business - which de Luca denied.

De Luca then handed in his notice. When he left in August 2000, the firm argued it did not owe him commission earned since he was suspended.

His commission rate was 20% of the money received by the firm for placements he made, according to his employment contract.

De Luca took the firm to an employment tribunal, which said Longbridge had unlawfully deducted the money from his wages. Longbridge has now lost its appeal against that decision.

Longbridge, which is best known for headhunting lawyers, has admitted to an 'annus horribilis' in 2001. It made a pre-tax loss of 4.7m, compared to a profit of 1.3m the year before.

During the year, the firm axed plans to buy the international recruitment company Stephens International, citing the short-term cost. It says it also undertook a 'rapid downsizing programme' at the end of 2001.

Longbridge's share price has fallen more than 80% in the past 15 months. However, the price has recovered sharply in recent weeks from even lower levels.

The firm says the worst is over and that it is hiring consultants again in several sectors, including fixed income and banking.

Frank Varela, the chairman, says: 'We have dealt with our problems and we are reinforcing healthy areas, as well as moving into new ones.'