Dinesh Divekar
Business Mentor, Consultant And Trainer
Bharat Gera
Principal Hr Consultant

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Dear all,

As per client request, We are allowing our employees to work from our client place after establishing MOU between two companies. After three months, our employees who are working from client place are starting to give the resignation one by one. Meanwhile, I came to know that one of my outsourced employees is working in client company who is absconded one month before. Now I am not interested to continue the business with them as well. Kindly guide me how to handle this client and please correct the below letter i wish to sent my client.

Disappointment Letter

I would like to express my disappointment.I hope you agree with me that our outsourced employees working from your place are resigning their job gradually and this is not acceptable under any circumstances. We need to know the reason rely upon this issue. I trust that you will deal with this issue in a top urgent fashion. I also trust that you will take the necessary precautions to prevent such incidents in the future.

I am looking forward to hearing back from you.

Regards,

xyz
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Dear XYZ,

correcting format of "Disappointment Letter" is a different matter. However, before sending the letter to the client, have you investigated the causes of employee exit? How many employees exited in what span of time? What is the % ? What is attrition ratio in the client's company for the employees who are on their rolls?

Just because of continuous exits, it would be wrong to blame the client. Have you conducted exit interviews? What is the outcome of such interviews? Sending disappointment letter could be counter-productive and it might turn out your assumption. Possibly some other reason like poor remuneration may also be the reason for which not necessarily client is responsible.

Lastly, if possible go in person and visit the client. In the personal meeting, explain your difficulties about employee turnover and how it increases your cost. Sending letter like this could be assertiveness of the highest kind. The language that you have used is quite harsh. Please note that harshness has no place in professional set up.

In view of this, I recommend you investigating the matter thoroughly, having a personal meeting with the client and then sending a letter as a follow up or just sending minutes of the meeting. Please note that there are intricacies in every business and losing a client is not advisable. In running a business, one has to wade through these challenges. You have this type of challenge.

Thanks,

Dinesh Divekar
Mr.Dinesh Divekar, Thank you so much for your valuable reply.
Have you done root cause analysis on employees attrition, have you taken exit interviews of the employees who left. What type of difficulties/ problems your employees face at client location?
First of all You need to study the MoU. This is the document which governs your relationship with your client. If your MoU is silent the issue of employing your current or ex employee/s then nothing can be done.
Regarding absconded employee, is there any complaint or charge against him from your side, if no, you should
not do anything. In case there something related to dues or integrity, you can inform your client, rest depends on your client.
A face to face meeting may clear the misunderstandings/doubts.
Mr.Dinesh Divekar,
As you said, I made a proper investigation with my employees regarding their resignations. The client is a startup company and they are personally approaching our employees to recruit them as their own and offering some monetary benefits At the same time they are getting salary from my end. I am facing this issue on the second time, in order to retain my client I continued my business with them after having a personal meeting at two times. Meanwhile, I am bearing loss due to their irregular payment and payment pending on every time. If it continued, loss may also be suffered in future. So that I planned to stop continuing the business with them.
Dear XYZ,

This is the reply for your second post.

If the client is poaching contract employees then partially it could be because of improper wording of the contract also. Anyway, startup companies resort to these methods because they wanted to save cost on service charge of the contractor + service tax.

Secondly, for irregular payments, I recommend you having third and last meeting. Discuss each point and note down the Minutes of the Meeting (MoM). Later send the MoM. In the follow up to the MoM, just send the letter for the termination of the contract.

My only point was about the professional approach in your communication. Nothing wrong if you get frustrated because of your client. All the clients are not as white as lily. However, we can have separation without downloading this frustration also. You have provided the format of the letter in your first post. However, letter of this kind could antagonise the client and possibly they may delay your payment still further. Please do not ignore this aspect also.

Thanks,

Dinesh Divekar
Mr.Dinesh, Thanks for your suggestions and i want to take this issue in the polite manner. Can you please send the sample letter for the termination of the contract.
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