Sacking a key contractor

[Louis Balfour]

Six months ago, we engaged a contractor to look after a part of a new business (I'd prefer not to say what it is). This involves them having access to our customers, and some of our systems, but nothing financial. It is not ideal allowing an unknown quantity this much access, but it was unavoidable.

They have not been terribly good. The standard of what they have done has usually been below par and their communication has been appalling.

Last week, we discovered that they had invoiced us for work they had not done. Today, I have been sent a text message thread by another contractor, showing that the contractor in question has tried to divert one of our business enquiries to a competitor.

Whilst it is not a convenient time, I don't think we have any option but to get rid of them.

The problem is that the contractor (the boss anyway) appears to be a vindictive sort and they have access to sensitive business information, plus many of our customers. Normally, if we want to end a relationship with a contractor, we just pay them what they are owed and don't use them again. But this is more complicated, obviously.

We owe them some money. Right now, we are thinking of holding onto that until they have returned everything, and we have prevented them having access to any part of our business. We will tell them exactly why we've taken the decision.

Another approach is to just tell them we aren't using them anymore and not give a reason. Our contract provides for that.

Anyone been through this before?

[p4cks]

Block their access to the systems before you go down the route of confronting them or having discussions about their overall performance. Remove that risk first and they’ll also have nothing to ‘bribe’ you with

[Whoozit]

Agree with the first reply. I had a similar situation with a contractor refusing to discuss why client information had not been uploaded our server. I sat on their (five figures) invoice, making it clear they were in breach of contractual obligations and it would not be paid until I was satisfied the obligations were meet.

[DSLiverpool]

Let them hang themselves by giving you a full activity report before you block them, otherwise they will cite lack of access as the reason they cannot justify work done / not done. You don’t need to use it just have it.

Obviously we don’t know the services in this case but sadly this is very common right now in Amazon account management where the day to day running and marketing is run by inexperienced staff as the company takes on ever more clients.

[Louis Balfour]

DSLiverpool said:

Let them hang themselves by giving you a full activity report before you block them, otherwise they will cite lack of access as the reason they cannot justify work done / not done. You don’t need to use it just have it.

Obviously we don’t know the services in this case but sadly this is very common right now in Amazon account management where the day to day running and marketing is run by inexperienced staff as the company takes on ever more clients.

I've already spoken to them about work invoiced but not performed. They said "oh we thought we were allowed to charge that, regardless of the actual hours".

I haven't spoken to them about trying to divert business elsewhere. It was profoundly stupid, because the enquiry hit the business via one of our "trusted staff" who had skin in the game and who was always going to keep an eye on things.

[Golfgtimk28v]

What does your contract say for terms for termination? What SLAs were agreed in writing?

[Louis Balfour]

CheesecakeRunner said:

Louis Balfour said:

I've already spoken to them about work invoiced but not performed. They said "oh we thought we were allowed to charge that, regardless of the actual hours".

Just to be sure, double check the contract you have with them, they may be able to. I have some contracts with clients that allow me to bill simply for being present and have no requirement to actually produce any deliverables or do any work. Seems crazy, but that’s what was agreed.
t.

There is no provision for charging just to be there.

Golfgtimk28v said:

What does your contract say for terms for termination?

2 months notice either way. But we won't observe that; they have tried to steal from us, twice. They can sue for their 2 months if they like.

[Whoozit]

Louis Balfour said:

Golfgtimk28v said:

What does your contract say for terms for termination?

2 months notice either way. But we won't observe that; they have tried to steal from us, twice. They can sue for their 2 months if they like.

Depending on your contract there should be an ability to terminate immediately for breach. It'll be important that your communication with them quotes where the breach is in the contract terms and your exercising of the termination, referencing the exact clauses. Depending how comfortable you are with contractual wrangles, it could be helpful to get legal advice.