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Hi All,
This is my first post on this forum. I'll try to keep it brief, although it has weighed heavily on my mind for a few weeks (so please forgive if I go on). I hope my post stays within the rules.
I have run my Ltd. company for the past 9 years, having been a sole-trader before that. I've had employees come and go in that time, but I don't think I've ever experienced a situation like that which I'm about to describe.
My business provides some software (which I wrote myself) for a specific industry and purpose, along with the training / consultancy to deliver this as a complete "end to end" service. It is fairly well-known company in our industry and there are only two other competitor software products. I have always thought we thrived on the fact that, not only was our software good and well-known and trusted, but that we also trained our users in how to use it and make the best of it. So, our offer became "software + training, combined", or in certain cases, "software + training + consultancy".
The business expanded in recent years, but also diversified. As Director, I applied an "if it ain't broke, don't fix it" mentality. Our diversification led to me leaving this product line in the hands of two FTE staff, both on PAYE at a reasonable rate (north of £40k each).
A few months ago, I got the feeling that all was not quite right in this area; despite good sales performance on software licensing, I was not seeing anything in the way of training / consultancy / support work through our accounts. A client complaint led me to further investigations. In short, it turns out that both of those FTEs have been "up-selling" their own consultancy services and, "down-selling" our own support / training / consultancy packages in favour if their own. They both seem to have set up their own Ltd. companies to do so. I have firm evidence for one, in the form of e-mails sent to a client from a different e-mail address. I don't have this for the other, as yet, but my suspicions are still very real.
I have seen some e-mails sent to new or potential clients and they make me feel quite ill. In that, my software is portayed as "something you will need", whilst ("I help you along the way and make it very easy"). Moreover, this is the service that I was expecting from both FTEs anyway, as part of their hours worked, and they're charging more for their 'consultancy' than I ever would deem appropropriate.
As far as I can tell, this has been going on at this scale for about a year. I now have all firm evidence and can confirm that both have FTE contracts in place, which they are significantly in breach of many clauses of.
I now need to understand how best to act. I only discovered the scope of these infractions within the last month and, whilst tempting, did not act right away. I now believe I have assembled all the evidence required in one case, and am about to for the other. I obviously need to act, and fairly quickly, but I am also quite fearful that:
- My steady software sales will decline
- My potential clients will be taken elsewhere, and I will not be able to even talk to them
- As above for existing clients
I also don't really have the time available to step in and rectify the whole lot, although of course I shall if I am forced to. I certainly cannot fill both roles as well as my own.
I'll leave it there for now. Obviously, all I want is what's best for the business and the operation I set up nearly 10 years ago. I feel that I need to act quickly, but not hastily, and I firmly believe that employment law is on the side of my company. All views are very welcome.
I should also add that this line of work can be in a loss-making position in some months of the year. I don't think that has ever been considered by these two people. It is balanced by other revenue streams that I work on (solely), but in that case, and given what they appear to have done, I am just working harder so they can make more money.
I'd like to find an amicable way to stop this happening (but keep valuable / knoweledgeble) staff, although if that is not feasible, I would prefer to reclaim my losses as casused.
Thank you for reading and all comments will be responded to.
This is my first post on this forum. I'll try to keep it brief, although it has weighed heavily on my mind for a few weeks (so please forgive if I go on). I hope my post stays within the rules.
I have run my Ltd. company for the past 9 years, having been a sole-trader before that. I've had employees come and go in that time, but I don't think I've ever experienced a situation like that which I'm about to describe.
My business provides some software (which I wrote myself) for a specific industry and purpose, along with the training / consultancy to deliver this as a complete "end to end" service. It is fairly well-known company in our industry and there are only two other competitor software products. I have always thought we thrived on the fact that, not only was our software good and well-known and trusted, but that we also trained our users in how to use it and make the best of it. So, our offer became "software + training, combined", or in certain cases, "software + training + consultancy".
The business expanded in recent years, but also diversified. As Director, I applied an "if it ain't broke, don't fix it" mentality. Our diversification led to me leaving this product line in the hands of two FTE staff, both on PAYE at a reasonable rate (north of £40k each).
A few months ago, I got the feeling that all was not quite right in this area; despite good sales performance on software licensing, I was not seeing anything in the way of training / consultancy / support work through our accounts. A client complaint led me to further investigations. In short, it turns out that both of those FTEs have been "up-selling" their own consultancy services and, "down-selling" our own support / training / consultancy packages in favour if their own. They both seem to have set up their own Ltd. companies to do so. I have firm evidence for one, in the form of e-mails sent to a client from a different e-mail address. I don't have this for the other, as yet, but my suspicions are still very real.
I have seen some e-mails sent to new or potential clients and they make me feel quite ill. In that, my software is portayed as "something you will need", whilst ("I help you along the way and make it very easy"). Moreover, this is the service that I was expecting from both FTEs anyway, as part of their hours worked, and they're charging more for their 'consultancy' than I ever would deem appropropriate.
As far as I can tell, this has been going on at this scale for about a year. I now have all firm evidence and can confirm that both have FTE contracts in place, which they are significantly in breach of many clauses of.
I now need to understand how best to act. I only discovered the scope of these infractions within the last month and, whilst tempting, did not act right away. I now believe I have assembled all the evidence required in one case, and am about to for the other. I obviously need to act, and fairly quickly, but I am also quite fearful that:
- My steady software sales will decline
- My potential clients will be taken elsewhere, and I will not be able to even talk to them
- As above for existing clients
I also don't really have the time available to step in and rectify the whole lot, although of course I shall if I am forced to. I certainly cannot fill both roles as well as my own.
I'll leave it there for now. Obviously, all I want is what's best for the business and the operation I set up nearly 10 years ago. I feel that I need to act quickly, but not hastily, and I firmly believe that employment law is on the side of my company. All views are very welcome.
I should also add that this line of work can be in a loss-making position in some months of the year. I don't think that has ever been considered by these two people. It is balanced by other revenue streams that I work on (solely), but in that case, and given what they appear to have done, I am just working harder so they can make more money.
I'd like to find an amicable way to stop this happening (but keep valuable / knoweledgeble) staff, although if that is not feasible, I would prefer to reclaim my losses as casused.
Thank you for reading and all comments will be responded to.
