Safeguard against customer poaching

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by: Lee Malcolm
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Word Count: 325
Date: Fri, 20 Jan 2012 Time: 9:41 AM

The Duchess of Cambridge does not rank amongst the first people who automatically spring to mind in association with HR payroll matters. However, she has recently found herself indirectly embroiled in a situation concerning her hairdresser that bears direct comparison with issues faced by numerous businesses – that of potential customer poaching.

It is well documented that the Duchess has had her tumbling tresses attended to at Chelsea’s prestigious Richard Ward Salon for some time. However, her famous locks have not been coiffed by Richard Ward himself, the honour being awarded to his Creative Director James Pryce. He was the man responsible for the now famous hair style sported by the then Kate Middleton on the day she married Prince William. It was also he who accompanied her on the couple’s first triumphant tour of Canada, along with hairdressing equipment provided by the salon.

In late 2011, James Pryce resigned his position at the Richard Ward Salon and both parties are understandably keen to retain such salubrious custom. Many business owners and their HR payroll representatives have been faced with essentially identical dilemmas as that now faced by the salon. Have they taken any measures to ensure that an outgoing team member cannot approach their customers with a view to poaching them? If ex employees do approach their customers, is there anything they can do about it if the customers themselves decide to take their business elsewhere? Does either party have rights over the customer?

We, at Moorepay, are an invaluable HR payroll tool to have at hand when businesses are formulating contracts for key position holders. We have vast experience of the contractual obligations that can be built in to employee contracts and that govern their approaches to customers after leaving. Such obligations allow businesses breathing space to safeguard against customer loss as a result of poaching when employees choose to move on.

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