where do we stand legally on this. I know it is not what an accountancy body will view as ethical but what can you do in practice about this if someone leaves and then starts pinching your clients? is there a time limit after which it's OK for them to do so (like in a few months)?
there is some vague clause in the contract but not sure it is worth too much
has anyone been in this situation before?
many thanks
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Depends on what side of the fence you are sat on
You don't as such have to [***] the client, they will follow.
The hard part is getting the working papers that are required to continue providing a service.
My old employment contract did not have a clause about leaving and taking clients with me, but naturally it was not best practice.
In practice there is not a lot you can do, if the client want's to go, they will.
It could cost more to prove that the client had been snatched by an ex employee.
Clauses of little value
Contracts preventing trade with ex-clients tend to be of limited value because, except in very unusual circumstances, anything much longer than a few months grace would be regarded as unreasonable and unenforceable (restraint of trade).
Better to focus time and effort on how you add value such that clients want to stay with you. Is it clear why clients are jumping ship (price, service, relationships, trade knowledge, etc)?
Captain
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I think all you can do really is to try and get on good terms with the ex-employee. Try bribing them with surplus leads or sub work etc (presumably you are going to be struggling for a bit for time until you train someone up, and they will be staring at an empty desk for a while) and make it clear it stops if they start pinching!
I think it depends what happens, ie if they are enticing people or the clients who did have a good relationship with them move over of their own accord. If the former then you will need to spend a lot of time with clients likely to go "poof", for the latter not a lot you can do.
Snatching clients
What you always have to remember is that clients don't belong to anyone. Clients are individuals who have the right to take their business where and to whom they choose. If they go to an ex-employee it is for a reason, same as if they moved to a competitor.
There is no point in challenging the move. A better use of time is asking why they are leaving and ensuring that you have systems in place to ensure that whatever is being done by your competetitor is done better by you, other than very low fees of course, which are often a path to nowhere.
Is the poacher qualified?
The ICAEW does not allow its members to solicit clients from its ex employer. How are you going to to contact them? If you take anything from your former employer you will get in serious trouble from ICAEW. Why not try ringing ethics and see what they say. I know I did and it is not allowed.
What about the client in all this?
What about the client in all this bduncan.
The client (in this case) seemingly want's to deal with another company. Why should this freedom of choice be restricted? In practice of course, it can't. They will deal with who they want (Andy's point from above).
Captain
What about the client?
What about the client in all this bduncan.
The client (in this case) seemingly want's to deal with another company. Why should this freedom of choice be restricted? In practice of course, it can't. They will deal with who they want (Andy's point from above).
Captain
The client is free to choose whichever accountant they wish if it is someone new who used to work for their previous accountant then they can. The problem is how did they know about the new accountant. If the new accountant contacted them from information gained from his past employment then that is ethically wrong or the ICAEW seem to think so.
It is not that difficult though is it. Hairdressers have been doing it for years. Put an advert in the local papers saying Mr X has just set up in practice pleas give him a ring.
ethics wot ethics
Seems to me that the point seems to be that you can get round it and don't have to behave ethically.
I would say that is the difference between a professional and an other.
Absolutely nothing you can do other than look at why they may be leaving and give all of "his" client portfolio a little extra TLC.
re the ICAEW and ACCA
please can someone point me at the relevant bit in the ethics guides, i havent come across this before and always relied on the contract and good service levels.
if you look up ACCAs rules there is something about this under investigating complaints - ''enticing clients away from past employers''...
something similar
A long time ago I left a partnership. A client , who was an existing client BEFORE I joined, decided to folllow me. The situation was defused by the client writing a suitable letter to my ex partners.