more-arw search

Q&A Forum

Can a client hire away our long-time contractor?

Can a client hire away a long-time contractor of ours without paying our company compensation?

We have a long-time contractor (several years) who mostly does work for our consulting company. Our client likes her very much and wants to hire her permanently. Should the client pay us compensation? If it goes through, we will be losing a valued resource. However, she is not technically an employee.

Answers

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

You see her as a valued resource that you did NOT make her an employee......right! The answer to your question is....YES! The client can hire her away without payment to you unless your Contractor agreement specifically says otherwise. Looks like your client "values" her more than your company does! Good for her!

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

It just occurred to me that your "Consulting/Contract Agreement" with the CLIENT has more weight in answering your question than the Contractor Agreement. ...so you should have those looked at also.

Lawrence Caffrey
Title: Accountant / Bookkeeper
Company: SES Foam
LinkedIn Profile
(Accountant / Bookkeeper, SES Foam) |

Emerson, what a great response!

Lyle Newkirk
Title: CFO
Company: Corrigo Incorporated
(CFO, Corrigo Incorporated) |

You should check the consulting agreement you have with this contractor to see if she is under confidentiality restrictions. It is possible that she is prohibited from taking trade secrets of other knowledge gained while under your engagement to a third party. I would have this checked by counsel. Of course you run the risk of upsetting both the contractor and the customer but you should at least know what the legal landscape is before you decide what to do next. There also is a concept of tortious interference with a contractual relationship and possibly your customer has done this. Counsel could advise and again you may make someone very angry by starting a fight on this basis.

1807 views

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.