Starting own business

[ohdarling]

Hi Everyone,

I wanted some advice on what to do on this situation, i have a staff member who i've just noticed that she she is purchasing equitpment. She only lives 2 min walking distance from the salon and im worried that she is going to steal the clients from the salon. What should i do?? Is there a law about staff not being able to open a salon within 5km from when they work.
Thanks

 

[classixuk]

Nope. There is no law, and anything written into a contract of employment to suggest such a clause is unenforceable in court.

My best advice is for you to sit down and ask her. Be truthful about it and then act accordingly.

Let us know how you get on.

 

[Sarah-Jean]

Total rubbish.

Do you have a contract? And does it have a clause about working or operating within a certain mileage and time frame from the salon after leaving?

If you have a contract that states she can not work within a 1 mile radius of your salon for the next 6 months that is very enforceable and I would encourage you to remind her of that fact. If not, slap her with one tomorrow and see what she does.

 

[classixuk]

Total rubbish.

Do you have a contract? And does it have a clause about working or operating within a certain mileage and time frame from the salon after leaving?

If you have a contract that states she can not work within a 1 mile radius of your salon for the next 6 months that is very enforceable and I would encourage you to remind her of that fact. If not, slap her with one tomorrow and see what she does.

No its not.

I've been through this before.

Let me put it this way. If you sack someone (or they leave) do you really believe that the benefits office would understand if they told their advisor, "I want to go for those 3 jobs, but I can't so I'll have to stay on benefits". The advisor asks why, and they say "My old boss who no longer employs me told me I cannot work in any of those places".

The benefits office tell them to get straight into the salons advertising for staff and apply for the job. That's how it works.

Unless you are continuing to pay the person, you cannot legally deprive them of an income. There is no law that allows you to do so.

 

[Sarah-Jean]

I really suggest you check your facts. Because if YOU sign a contract that says ou can't work for 6 months within a mile of your previous employer, that IS totally enforceable. I know, I've had it happen and so had my Husband who actually went to court legally over it and it was imposed by them.

Contracts don't just state terms to scare you... They're there because they ARE enforceable and if you sign you DO agree to uphold those terms. And telling her a contract is not, is utterly ridiculous.

 

[Nails<3]

If you have no contract stating she cannot work within a certain distance then she is free to do what she wants.

Also you cannot just slap her with a new contract stating this, it should of been in the first contract she had given.

If you do decide to try and get her to sign something stating this, she doesn't have to agree as you are changing the terms of her contract and she has to agree to this. So unless you have had it in writing when she first started you have to leave her to it.

Hth x

 

[Sarah-Jean]

If she doesn't have a contract, you can issue her with one at any point (and legally you should). She doesn't have to agree with it - she can walk. But if she wants to keep her job with you, then she'll sign it.

You are also well within your rights to add extra bits to your contract at any point in agreements and restrictive covenants. They don't have to sign it, and you can't discriminate against them if they have a contract and don't want the new bits added... But you can add them in.

I seriously can not believe the amount of people who give legal advise on here who obviously have no idea. I thought this was a business forum?! How can people not know this stuff??????!

Do not lie on your back and take this. You worked hard and put a lot of money into building YOUR business. Don't let someone steal that out from under your feet because a few here tell you "it's not possible". What's the point in all the heartache being a business owner entails if you aren't going to fight to keep it?

 

[ohdarling]

Thanks guys.
I have heard that there's nothing i can do as i can't stop her from making having an income.
In her orriginal contract it was just a basic on, about her position and hours, it didn't have anything in there about her opening up. If i do a new contract can she refuse to sign it? As it's a busy time of year i don't know if i should approach her about this now or wait till the new year.

 

[Sarah-Jean]

You can add in agreements or restrictive covenants... They don't have to sign them but you can add them in. And frankly if they don't, then it says more about them than about you.

And to be fair, it's better to say bye to one person who is going to be poisonous to your business or steal your clients than it is to hold onto them for a busy period.

So the way I see it you have three choices;

1/. Ignore it and hope it goes away (I did this, was a big mistake)
2/. Add extra bits to her contract/agreements/covenants and hope she signs them
3/. Get rid of her before she can do any real damage

Frankly, I am a bit marked now. I no longer trust anyone. A little piece of my heart died when I became an employer. I'd get rid if you suspect she's about to do you over. If she's been with you for less than a year, now is the best time. But it's up to you.

 

[Nails<3]

You can't just add bits in, the employee has to agree to the changes and if he hasn't agreed or signed then its not worth the paper it's written on.

I have been through situations like this with my previous job when they were trying to change things. They are not allowed unless you agree.

 

[Nails<3]

If she doesn't have a contract, you can issue her with one at any point (and legally you should). She doesn't have to agree with it - she can walk. But if she wants to keep her job with you, then she'll sign it.

You are also well within your rights to add extra bits to your contract at any point in agreements and restrictive covenants. They don't have to sign it, and you can't discriminate against them if they have a contract and don't want the new bits added... But you can add them in.

I seriously can not believe the amount of people who give legal advise on here who obviously have no idea. I thought this was a business forum?! How can people not know this stuff??????!

Do not lie on your back and take this. You worked hard and put a lot of money into building YOUR business. Don't let someone steal that out from under your feet because a few here tell you "it's not possible". What's the point in all the heartache being a business owner entails if you aren't going to fight to keep it?

I think you should stop being so rude in your replies. Go to ACAS and they will advise you.

 

[Peach1987]

You cannot just add things into a contract that has already been signed. It has been signed for a reason, that's like a landlord saying I will give you this house for x amount, then deciding a few weeks down the line that they want double and just adding it in!
Anyway you might just be jumping the gun, you haven't even spoken to her yet, she could just be doing treatments on friends or family or even herself!

 

[Peach1987]

But I do hope you get this sorted, is there any reason why you think this? Has she been acting strange or unhappy etc ? Xx

 

[FlawlessBeauty]

I'm curious as to how you found out that she is purchsing equipment? What kind of equipment? If it is big stuff then maybe she is going. If it's only little things she might be doing mobile work outside of her normal hours, or even just using it on herself and friends.

Just wanted to add that Sarah-Jean did say that if you are going to add to her contract, that she will need to sign that she agrees to the ammendments.

Do you have many girls working for you? Maybe you could renew a contract for 2012 for all of the girls and get them to sign.

Also, i would keep an eye on your client contact info, until you know either way.

Do you have an agreed period of notice for someone that is quitting?

If you are really worried, i'd just casually ask her, lol....."Oh i noticed that you've just brought a (Hive wax pot, for example), i find that they work really well. What do you think? Are you having any trouble travelling with it?"

 

[classixuk]

I really suggest you check your facts. Because if YOU sign a contract that says ou can't work for 6 months within a mile of your previous employer, that IS totally enforceable. I know, I've had it happen and so had my Husband who actually went to court legally over it and it was imposed by them.

Contracts don't just state terms to scare you... They're there because they ARE enforceable and if you sign you DO agree to uphold those terms. And telling her a contract is not, is utterly ridiculous.

Wow. Calm down.

I'm an employer myself and manage a team of 13 people. I've been in business over 10 years, and as I understand it, you cannot demand that the UK taxpayer supplement a 3rd party on the benefits system just because you don't like the fact the work they are being offered is in an area 'too close to home'. Benefits applicants are now being forced to find work, or they work for their benefits. We've just had a girl in for 8 weeks on this scheme, and I am confident when I say that I doubt very much the jobcenter would be happy for her to remain on benefits because the salon around the corner didn't want them working in certain places.

I know that I, as a taxpayer, wouldn't be happy about it either. If someone has the chance to get paid work they should take it.

You can place restrictive "non compete" clauses, which specify that the staff member will not use any of the information gained whilst in your employment to harm or hurt your business, and this would be enforceable should they break that clause by, for instance, stealing your client information and using it to their advantage, but not a radius clause that prevents them finding paid work in their home town and thereby subjecting them to relative poverty for any given period in time.

 

[Maniqueen]

Or u may not want to do this but just say oh(her name) u have been doing so well here and ur such a great therapist and so loyal to me' I am goin to increase ur wages by say 50p an hour an then she will say oh great that's brill, then say perfect here is the contract just stating that ur getting an extra 50p and make sure u add i'n about the radius clause! Hope this helps

 

[nicola0201]

classixuk- 100% agree!!!!!!!!!!!!!!!!!!!!!!!

 

[nicola0201]

can i also just add that i know lots of therapists/hairdressers who have had such contracts that stated they couldn't leave their salon and work within a 5 mile radius for 6 months/1 year etc and they sought out legal advice for themselves and were basically told the contract wasn't worth the paper it was written on. provided they didn't actually steal a record card or client info and take it from the salon then they are well within their human rights to leave. i've seen the salon world from both angles, as an employee you want to be free to go wherever and further yourself, as an employer you don't want to lose clients by an employee leaving. however as an employer when you take on a new member of staff you don't hear many saying don't bring clients from your previous salon, we'll start your column from scratch and i'll pay you for having no clients. its normally the first thing i've been asked "can you bring clients with you". just my point of view/experience, not saying its right but this is salon life. its how we've all got clients, employers and employees-through picking them up along the way

 

[Martin Duffy]

I've seen evidence of restrictive covenants upheld and dismissed, the key issue seems to be 'resonableness'. There's lots of advice on this online, but this link simplifies it:

Restrictive covenants | Employment Law Basics

 

[Sarah-Jean]

I'm sorry if I came across as rude. That was not my intention at all, I just find it extremely frustrating to see advice that is actually wrong being given here. If you don't know the answer you shouldn't advise... It'd be like me going to the hair forum and giving false advice on colouring! Frustrating for those that know what they're talking about, and bad for the original poster too.

Plus I'd had a crap day as had to put up with family I don't like so maybe wasn't as patient as I'd normally have been! LOL