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A question from the CPians who were/are running business.
As you all know from my last post that I won a big business recently.
Now for a bit of work, am thinking to hire a freelancer or another company as I don't want to hire too many full time developers till I have 10-15 regular clients. So in this scenario, how do you make sure the freelancers/external companies doesn't contact your client directly. Obviously it won't effect my business but won't look good from professional point of view. So I want to force this right from the beginning that at any cost, they should not contact our client by any means.
I know, there is NDA form but not sure, if I can include this information in NDA form.
Part of the NDA should cover client confidentiality, so I would think it is fair game to place a no-contact clasue in the contract.
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It all depends on who's drawing up your NDA with the contractor. If you are drawing it up alone then it probably won't be worth the paper it's written on as it won't be watertight. Get a good solicitor to come up with a suitable NDA if you are worried about this behaviour.
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After 12 years in the market and after seeing plenty of things I've lost my faith in the institutions, you'll spend a lot of money with lawyers and at the end the freelance can open a business or even worse can start working for another company that makes him to contact your customer (and of course that other company can be his wife's company if you understand me).
The right place would seem to be the NDA but I would put it in the same contract you will sign down as, if you make him sign down anything after signing the contract, he can claim that you've forced him to sign down something under coercion...
Probably your best bet is: contact a lawyer which you trust, follow his/her guidelines and become calmed...
Been through this scenario a few times. Nothiong to do with an NDS everything to do with your contract with both the 'employee' and with your client.
Best solution is to have a clause in your contract with the client that they will not directly employ any sub-contractor of yours for a 'suitable period' following their employment by you - and have similar clause in your 'employee's' contract.
My understanding (from a while ago, in the UK) is that the clause in the employee's contract is worthless as it isn't upholdable - but it will show your intentions.
You will need to consult a lawyer to make sure wordings are correct, though.
My favourite version was a company whose contract simply stated that the client agreed to pay us 40% of any payments they made to ex-employees of ours directly, for a period of 12 months.
All of these things are get-aroundable (contractors set up companies who contract to your client and then employ them, for example) but they will generally stop the contractor who spends a lot of time on site just jumping ship, carrying on with their work directly for the client,m who saves money by paying directly.