Employee Troubles

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RaisedintheBiz

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Nov 4, 2005
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Location
Southern California
If anyone can offer solid advice, or even just support, it would be greatly appreciated. Bear with me, because this might get confusing.

Quick facts:
-My mother owns two salons. I'll refer to one as "North" and the other as
"South."
-She is currently out of the country with no way to reach her. She'll be back next week.
-My cousin, also a business partner, is currently the decision-maker.
-"Mike" and "Sue" are two of our top five moneymaking employees, and they are husband and wife. Mike works at North, Sue at South.
-"Billy" is the manager at North, "Bobby" is the manager at South.
-Billy and Mike do not get along at all.

Since Mike and Sue make so much money, my mother tends to be overly lenient with them, allowing them to come late and leave early, etc. They have a huge customer following, and their revenue is excellent for the business. However, there had been rumors circulating that the pair desired to leave for a rival salon chain in the area. My mother refused to believe it, and took no actions to even find out if there was any truth to the gossip.

Yesterday, however, Billy was angered by Mike's irresponsibility, claiming that Mike came in late and then left without any regard to his appointments. He drove down to the rival salon hoping to catch Mike in the act, and to his surprise found Sue working there instead. Sue works full time at South, and had called in sick that day. Wary of confronting her, Billy called Bobby to ask for his advice, and Bobby quickly informed me.

I offered to drive down there to catch her myself, so that Billy would appear to have no connection to the affair, because otherwise Mike would maintain an even deeper vendetta against him. Both Billy and Bobby were eager to have me personally discover Sue. My cousin brought up the point that perhaps Billy was making it up in order to have them both fired, so seeing her with my own eyes would be irrefutable proof.

I was actually over an hour away, however, and by the time I got to the area, Mike had returned to North and left again, presumably to pick up his wife. I reached the salon with my friend, who pretended to need a pedicure, and disappointedly did not see her. Regardless, my cousin felt that it was time to let them both go, before either of them could steal all the clientele.

This morning, they both came to work and swore vehemently that they had too much integrity to ever pull anything like that. My cousin felt she had no choice but to let them stay, especially since my mother is out of town and unable to offer any input on the matter. She feels helpless, but admits that it's just one word against another person's, since I never did see her.

We have several concerns. 1st, they really might be planning to leave, and are using this extra time to collect customer numbers in preparation for it. 2nd, they might've tried it out for one day to see how the business was, and decided that they'd make way more money at our place. With this possibility, we'd still want them out of there, for their lack of loyalty. What makes it even trickier is that the owners of the rival chain are their friends and have been wooing them; thus we cannot just directly ask them if Sue had in fact been working there.

Finally, to get to my question for all of you out there (besides the "what would you do" inquiry), I think our best option is to write up a contract that expressly forbids them to work within a ten mile radius of the area, for a certain amount of time after they stop working for us. If they refuse to sign, we won't let them work for us. After all, they've sworn up and down that they want to stay and would give warning if they wanted to leave, so signing this shouldn't be a problem. But is that even legal? Are there such statutes that can be enforced in a situation like this? Please help, and thanks for taking the time to read this!
 
Yes!!

I'm not o100% sure about the employment law over there, however most countrys allow a restraint of trade clause. Stopping an employee from going out and becoming competative to the employer within a certain time frame.

You should be able to talk to an employment lawyer or employment management firm to find out the legalities, etc.
 
Thank you, Envy, for the proper legal term. I tried Googling simple English words to no avail ("prevent nail technician steal clients"? haha). Unfortunately, when I searched for "restraint of trade" and "california" I found all these sites that confirmed that my state is one of the few that find such clauses illegal. :sad: Infringement on fair competition, they all proclaim. Which is probably why in Southern California, you can get a deluxe spa mani/pedi combo for $18. I guess the contract option is out. So instead, my question for everyone will be, "What would you do?" Thanks!
 
Oh darn...

Not much else you can do then....

If they are good staff, I would hang onto them!
At least until you can find better replacements..!! ;)

And unfortunatly, there is very little you can do to stop them stealing clients, I beleive in most countries no one has 'ownership' of clientele.

However you can ensure they don't have access to client records etc, after hours... IE - no copies allowed (intellectual property) and no copying of them.

HTH
 
Wow what a dilemna. Could you not phone the salon and say I had my nails done by Sue on the day she was supposed to be in there and you loved them so much you'd like to book with her again so when is she next in! At least that way you may get some confirmation that she was or wasn't working there ... and if she wasn't then what would you do with Billy for making up stories about them? And if she is working with them, make a booking and turn up as a client!!!

It may be that Billy feels threatened by then and is actually stirring up trouble for you. If so it is obviously working!

Sue and Mike have a right to work where they like don't they? If they are offered better terms and conditions then heck they have bills to pay! Yes people are loyal, but only so far, at the end of the day we have to look after number one! So are you looking after your number one technicians enough?

Yes they may be your clients, but at the end of the day the client has remained loyal to you because your staff are damned good, so your clients also have a right to chose who does their nails and at what salon. So even if you enforce a restricted area in your contract they could still work (mind 10 miles seems a bit steep).

Do you really think they would tell you if the were looking elsewhere? They know you'd start treating them oddly and with mistrust, which is what is happening now and they haven't even said anything!!

At the end of the day you cannot make them work for you, all you can do is be fair, if they can't respect that then maybe they aren't employees that are worth having, but I wouldn't get rid of them without real evidence!
 
From what I've heard you can't make them sign that contract if they live within the ten mile radius because if that is their profession, you are basically telling them they can't get a job close to home to pay their bills.

Just what I've heard

xxxx
 
I don't think that you can bring in a new contract now.................that should have been done when you employed them.

Here's what I would do. I would call them both into the salon when you're closed and be straight with them. Tell them what you know for a fact and also tell them the rumours that have been going around. Give them a chance to put their side of the story.

I'd tell them how much you value them and and their client base but also tell them that you will never put up with disloyalty from any member of staff and as much as they are an asset to the salons, you won't be held over a barrel by them or anyone else. There are plenty of brilliant hairdressers/therapists out there and it's a two way street.

Make it clear that you're happy to draw a line under what has or hasn't gone on and start with a clean slate. Tell them though that if you have any reason to question their loyalty again, you won't hesitate to sack them on the spot. Although it's illegal to give a bad ref, let them know that if they ever do the dirty on you, their name will be mud and it will be hard for them to find work locally again.

You can always ring ACAS, they are brilliant at giving you employment and employee advice. 08457 47 47 47 or www.acas.org.uk

Sorry to hear that you've having all this going on but you also have to be realistic. Unfortunately, this has always gone on in salons and always will.

Good luck. x
 
Sassy Hassy said:
Wow what a dilemna. Could you not phone the salon and say I had my nails done by Sue on the day she was supposed to be in there and you loved them so much you'd like to book with her again so when is she next in! At least that way you may get some confirmation that she was or wasn't working there ... and if she wasn't then what would you do with Billy for making up stories about them? And if she is working with them, make a booking and turn up as a client!!!

!


What a brilliant idea Sassy!! I think that's a good way to try and find out. But if the owners are friends she might be wary of even saying Sue was there. Just a thought! Difficult situation. I think I'd just have to wait for your mum to get back, after all, it really should be her decision. Sorry, not much help!
 
I used to be a Personnel Officer before becoming a Nail Technician.

The other Geeks are correct when they say that you can't stop them leaving to work elsewhere, and you cannot just change someones contract without giving them notice of the change etc. You would have to do this with all the employees, not just the two in question.

The main concern from my point of view is that if Sue did call in sick and then go and work somewhere else for the day, this is misconduct or even gross misconduct.

The other concern is that you are saying that Billy saw Sue but you don't know if he was making it up. If Billy is the manager, then you have a problem if he is making things like this up.

Has your business got policies and procedures? Have you got disciplinary procedures? You need to check this and follow the policies. All companies have different policies and procedures and deal with things differently (hopefully all in line with legislation).

If this had happened where I used to work, I would have informed the person that an investigation was being carried out and suspended them from work (without prejudice) pending an investigation. I would have then interviewed everyone involved. If the investigation found that Sue had called in sick and gone to work for another salon, I would have called her into a disciplinary hearing. I did work for a large organisation so you may deal with things more informally but I think this is a serious issue.

As I said, look at your policies and procedures and follow them. No matter how good an employee is at their work, they should not be allowed to come in late etc and take advantage. Think how your other employees feel! What would you do if they started coming in late? You have set a presedent that this is ok.

Good luck, HTH.
 

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