I have a slightly troubling situation here and one that could very negatively affect my income if I don't handle it correctly so I'd like some advice please guys. This isn't actually a bookkeeping question but I know there's a wealth of expertise on here and hopefully some of you may have some words of wisdom for me.
I have been doing two full days per week out at a clients office and am effectively their Finance Manager. I am currently on maternity leave having stopped work on 15th April with baby due on 22nd April (no arrival yet but that's another story!). I arranged maternity cover with another local bookkeeper (AAT and ICB registered) to cover for me whilst off and have a contract in place with her that states no poaching of clients etc. This is the only client she is covering for me and it's for a minimum period of 2 months.
The client has a business coach advising him (I don't normally rate business coaches but this guy is very good and very switched on) and they have a meeting each month to discuss how the business is performing. Business coach has been saying for a while that they need someone full time in finance but MD disagrees and has been entirely happy with my 2 days per week plus Sage inputting from the office girls (purchase and sales ledger invoicing only with complex stuff left to me) but the BC has been banging on about this for so long that it's obviously now sinking in and me being off has given MD the opportunity to think about structure.
So that is the background.
I had a call from the MD yesterday saying that he proposes to have me do one day per week from the office, with the person providing maternity cover doing another day in the office (she is £4 per hour cheaper than me), then me as a backup from home on one other day (no guaranteed hours just there for emails/calls if required). Then he continued by saying he's going to be hiring a part-time FD in the next 9-12 months. As a side comment he threw in that he would give me 3 months notice if not required any more.
Now alarm bells are ringing very loudly because of this throwaway comment about notice but also because if he has an FD and a cheaper bookkeeper then why does he need me!?
He wants me to speak directly to the bookkeeper covering maternity leave and then get back to him. Obviously with baby due any day he's not set a timescale on this. I'm not sure if I'm just being hormonal, female and pregnant by seeing all the negatives as they're actually a really good client and I like to think he'd be honest with me, but all I can see in the future is me being squeezed out by an FD above and a cheaper bookkeeper below.
Now I can obviously enforce the contract that I have with the maternity cover and stop her taking the day they're offering her but I don't bear her any grudge and don't want to stop her business getting off the ground. On the other hand, she currently has two days work per week that she knew (or thought) would only be short term, that she wouldn't have if it weren't for me!
He also muttered something about making it easy for my childcare but in the 15 months I've been there childcare has never been an issue and never would be on the two days that I worked for them (grandparents are ace!).
I really need balanced and impartial input on this one as it's actually got me quite upset. That part is definitely hormones and the frustration of a baby who just doesn't want to arrive.
By the way, they use Sage which I am pretty expert in and the maternity cover is not experienced in at all. She's picking it up fast though!
Are you employed by them or do you invoice for the work carried out? I suspect the latter which means they are your client and they are free to dispense of your services should they wish. I actually think 3 months notice in that instance is extremely generous and means that the client is thinking of you. At the end of the day though he is a businessman and has to do what's best for his business. On the other hand I don't think the client could have picked a worse time to tell you, and I'm sure it could have waited two or three weeks to allow you time to get settled with the new baby.
I would look upon this as an opportunity to gain new clients to fill the extra day you lose, and gear towards filling the second day should the worst scenario happen.
As regards the other bookkeeper, whilst you could enforce the agreement, it could create difficulties with your client, who may see it as you throwing a spanner in the works and dispensing of your services completely, so it would depend on how strongly you feel about that.
If the former, then if you are contracted to work two days, he can't just replace you with someone cheaper without negotiating with you first.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Can't help thinking the MD is not following the advice of his business coach with regards timing. If he is aware you have a 'no poaching' agreement in place then his actions are dastardly.
As you have previously had a good relationship honesty may deepen the loyalty if you plainly offer a positive and a negative:-
Positive : You will help him in the transition to the new FD Negative : Tell him asking the maternity cover to break her code of ethics is not good personnel management toward yourself or the cover.
Best wishes with the new bundle and the website looks great.
Tim
edit: spelling
-- Edited by Don Tax on Friday 1st of May 2015 02:23:40 PM
I am self employed with them you rightly assume John.
I'm not sure if the MD is aware of the contract between myself and the cover - I haven't told him but equally haven't kept it a secret and she may have mentioned it to him.
Good points though Tim. Personnel management is not this guys forte! I really like him and we have a great working relationship but he does remind me of Gordon Ramsey in many ways. He is also completely ruthless when it comes to his business (or his baby as the staff call it) and so me getting in the way of his business progressing would definitely pave the way for my feet on the way out of the door.
To be honest the more I think about it, it's made me uncomfortable having close to 40% of my income coming from one client anyway so a reduction in hours (albeit at a really bad time for me!) could turn out to be a good thing in terms of allowing me more time to take on other smaller clients and spread the load in a way that makes me more comfortable.
I've also been trying to redress the balance between work I do from home and work I do out with clients so a half day working from home for them would be an advantage, although I'd be billing less hours. (I'd also have less childcare to pay for)
Hi Clare
All clients only ever think of themselves really but sometimes its only obvious at times of such changes. Doesnt help you though does it. Sometimes it takes that completely honest conversation as they just havent considered your side/factored in what you want or need and so sometimes thats enough for them to review their position. I was particularly blunt with one of mine recently when he annoyed me and just hadnt appreciated the massive effort I had put in to get him out of a hole....the bluntness shocked him, but he is a man who speaks his mind quite bluntly so he found a new respect for me and I do know he appreciates me more. Not the same situation but I think you should explain the arrangements you have put in place, all you have done to keep continuity of work and that its your livelihood....lets face it what have you got to lose.
On the other hand, I would suggest you treat this one as gone! Worse case scenario can then be dealt with, as you say by taking on other clients and its wise to spread the 'risk'. Plus I reckon once baby is here you might not want to have to go to someone else's office so much, but prefer to just sleep, lol.
Good luck with the birth
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
