[Angie@angelic]

Hello fellow hygiene fans.

I run a small cleaning business and I am look to sort of take people on but found it better if it was on a self-employment term.

My question is does anyone have a document template to make a contract saying basically if they were to steel customers and they are liable for a charge or something. I don't want to copy but something to give me an idea.


Thank you xx
 

angela.ffrost@rocketmail.com

[pristineclean]

Most people on here will be in a position to tell you this but it's unlikely that you can enjoy the best of both worlds - a restraint of trade clause in an employment contract is fairly simple and, so long as it's temporally and geographically reasonable, could possibly be enforced against an ex employee who has exploited the information gained in paid employment for financial gain. When a sub contractor tries to get between you and your customer, you'd possibly have a tortious interference or inducement to breach claim but it would be an ill advised course of action between you and anyone who you take on to carry out personal services and would cause more problems than it could ever solve.


In an employment contract, you'd have something which runs along the lines of

"I agree not to take on any works within 3 miles for a period of six months following last instruction for xxx ltd and that a £500.00 payment will become due on each breach of this condition"

that would possibly be sufficient deterrent for potential cleaning entrepeneurs to be dissuaded, though I have to say it wouldn't stop me..

[BDCS]

Nor me  You would have a pretty frail business if you relied on this, lets face it the threat of a thick lip would carry more weight than some unenforceable clause that would cost you a fortune trying to snide a few quid off some numpty that nicked one of your price shopper customers

[Great Outdoors]

Surely its best to have this covered via your contract with your client 

[Nicholas Head]

Hi

Personally I would not ever recommend "Restraint of Trade" clauses as they are more of a deterrent than having any legal standing (technically Restraint of Trade clauses are not legally enforceable) plus damages can be difficult quantify. I would advise that you invest in getting some legal advice to ensure that the contract is legally binding whether it is with the people working for you or your client.

Also, just a further thought, "self employed" labour it can be a "can of worms" if not set up properly. Therefore, check out advice on here on  insurance liabilities, badges of employments etc.. and look at the HMRC websites will give you more insight into any tax liabilities etc...

Hope this helps but email me direct if you need further help

Nick

[cml]

There are many debates as to whether  'Restraint of Trade' clauses are or are not enforcable and I do understand the point Nicholas Head is making. For instance where such  clauses are used to restrict competition.  

I am of the view that it is not worth having a 'Restraint of Trade' clause on a contract that would not cause a substantial loss to your company.  A simple contract stating terms of business will suffice.  
However should you have a large contract that is material to your company and if lost would cause a detriment to your company a 'Restraint of Trade' clause may not be disgarded.

In short the 'value' of the lost contract must be a substantial loss to your company.  i.e. a loss of £50K maybe sufficient  or £5,000 dependant on business turnover.  Each company would be assessed on their own merits.  

However Pristine Clean above has given a simple example on a scenario that could be used.  It not only serves as a deterrant but also a breach of contract terms.


 

[Angie@angelic]

Ok, thanks guys something to think about.

[Gray1]

Self Employed or Employed.
Do they have more than one source of income?
If you restrict them from gaining other employment, and you become their only source of income then you are employing them!
Check with your accountant as it might come back to bite you after they have filled their tax return.

Gray1