Ethical question

Sutherland

LawnSite Member
Location
Rochester, NY
So I had this guy call me today he's an old contact I had cultivated and gotten permission to bid his work. I submitted a bid before I left my last employer and I went into business for myself. The guy calls me today and he wants to use us for the two year bid witch would have meant a $25,000 commission for me. I really would love to receive some compensation for this but I don't know if I have the right to ask for it.

Either way I know I'll tell my old employer about it and make sure he gets the work. The terms I left the company were so-so and I'm unsure how to broach asking for this compensation.
 

PaperCutter

LawnSite Bronze Member
Location
Northern VA
As part of your sales and commission structure, was there an expectation that you (or any sales rep) would then become the account manager for that client? If so, it's unlikely they'll pay it as they're going to have to have someone in-house manage the business. It's still worth having the conversation with the former employer, though, because you may be able to at least negotiate something since you did all the legwork. As an employer, I don't know if I would pay out, though, unless something in the employment agreement dictates it. It's the nature of sales: you leave a job, you leave a job, and the next guy to take your spot benefits from the foundation you've built. I've been on both sides of that throughout my career.
 

crazymike

LawnSite Senior Member
Location
Ontario
Krazykajun

Most companies have you sign a non compete act. Which means, if you quit/leave/fired you can't go after work of your previous employer, can't work for company that did work for your previous employer. Depends on contract.

As for getting compensation. Your previous employer might throw you a bonus, but i'm sure you got work off the guy who was there before you.

Once you're gone, you're gone.
 

crazymike

LawnSite Senior Member
Location
Ontario
However, you might not just blindly send the customer to your old employer.

You could call your old employer and try to act as a middle man for him. Tell him you have an account, if he's interested, it's his for your commission. If he says no way, tell the customer, sorry, you no longer work for the company, have a nice day.
 

Dr.NewEarth

LawnSite Bronze Member
Location
Vancouver Canada
I can't answer to the ethics. If you can take on the contract, could you not hire a couple more guys for the season and buy another mower and trimmer?

Put one or two of your trained employees on the second crew and spread people around.

If I have more work than trucks for the crew, I can leave equipment early in the morning locked up on one site and get to work early enough to meet the other crew on another site. Or, I drop a trailer loaded with locked equipment before I drive to the other site with more equipment for the second crew. Then at the end of the day, I go to the first site and pick up the trailer.

If you don't have a non competition agreement with the past employer, then party on brother! I've found that in business you have to look after yourself and your employees before your competition.
 

KrayzKajun

LawnSite Fanatic
Location
Harvey,LA
If you don't have a non competition agreement with the past employer, then party on brother! I've found that in business you have to look after yourself and your employees before your competition.
Exactly. Only way to justify more equipment is to have more work. I say go for it! I know I would.
Posted via Mobile Device
 

Top