How to protect yourself from a subcontractor taking your client?


2

If I sub-contract, what forms, or agreements I need to make sure that my subcontractors don't compete with me in the near future.

How do I make sure that my sub-contractor will not be hired directly by my client?

Contract

asked Mar 26 '11 at 10:31
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Geo
268 points

4 Answers


5

Aside from this legal protection, you need to have some practical protection. The answer here is to make yourself a valuable part of the equation. If you aren't adding value, you will definitely need some protection. If however the client finds your involvement to be a boon, the legal parts while being a customary formality will not truly be needed.

answered Mar 26 '11 at 12:21
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Kenneth Vogt
2,917 points
  • That is a great comment, life is not solved by lawyers, but for some reason we tend to think of the law as the first answer. Thanks Kenneth. – Geo 8 years ago

3

You need to get a "Non-compete" agreement drafted by a lawyer. This will protect you a little bit. But I believe there's a time limit on these. I don't think you can legally bind someone for more than 12 months. I don't know for sure. Everytime I get one of these it's always for 12 months.

answered Mar 26 '11 at 10:42
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Laith
344 points
  • Thanks. That's what I imagined. – Geo 8 years ago

1

I would like to say that I really dislike this question as a start-up question from a number of angles. Here is why:

It sort of implies there are no founding partnerships, and no technical expertise in the core of the founding team. This is more the problem.

You should not have to be in a position where the question you ask here comes up. That is what I would encourage whenever possible as you are navigating your venture towards success.

Of course, I make many assumptions which can be wrong so if I didn't assume correctly, then nevermind, but honestly, if I did assume correctly, then what I had said becomes very important IMHO. :)

answered Mar 26 '11 at 14:48
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Genadinik
1,821 points
  • Thanks @Genadinik for your HO. You are right it does implies that. The reality is other. The core founding partners have deep understand, experience and IP on the core functions. There are tangents that we are subcontracting, but we want to prevent these subcontractors being hired for less, once they know the IP. I hope this clears up the confusion. Thanks, – Geo 8 years ago

1

I agree, a contract for services is the way to go here. You cant be involved with every client on a personal basis. The contract cant stop them taking your work but it will give you a case to take the contractor to court if they do, therefore they are much less likely to do so.

answered Sep 9 '13 at 23:07
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El Direct Ltd
11 points

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